What is capitalism in economics?

What Is Capitalism? Free markets may not be perfect but they are probably the best way to organize an economy Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society.

How does capitalism work?

Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society. The essential feature of capitalism is the motive to make a profit.

What are the characteristics of capitalism?

Also known as the market system, capitalism is characterized by private land ownership rights, competitive markets, the stable rule of law, freely operating capital markets, low corruption, and a price discovery process. In other words, it is the opposite of communism, in which the means of production are owned by and controlled by the government.