Understanding Characteristics of Capitalism

Explain : Characteristics of Capitalism Capitalism refers to an economic and political system, wherein the private individuals own and control the country’s factors of production (land, labour, capital) for making a profit. In finer terms, private property is the essence of a capitalist economy and profit works as a motivation here. Under this system, the government does not intervene in the management of economic affairs. The capitalist enterprises carry out production activities, wherein the private owners freely operate their business, as per their will, such as: -Where and how much to invest -What, how and how much to produce -At what prices, goods and services are offered for sale. Capitalism is the oldest social system, which is still prevalent in many countries of the world like United States, Australia, Canada, Mexico, Italy, France and many more. It is also known as a free-market economy or laissez-faire economy. Characteristics of Capitalism The charac