Capitalism
is an economic system in which all the production, distribution related work
will be in the hand of private organization. There will prevail free market
economy as the factors of production will be controlled by private sector also
there will exist no government intervention. ex-UK, Hong Kong
Features of capitalism
(1)Right to private property: In the capitalism system individuals and entity can acquire their own property easily. ex-Buying a house
(2)Freedom of enterprise: In this economic system anybody can start a business easily as there exist no government intervention. ex-Starting a IT business
(3)Freedom of choice by consumer: In this economic system the consumers can consume anything whatever they wishes. ex-Buying any mobile phone
(4)Profit motive: Individual and entity can consume profit as much as they can
(5)Competition: As there anybody can start business and can consume profit as much as they can, therefore competition prevails everywhere.
(6)Importance of price system: In capitalism there exists a complex price system. Because supply & demand decides the price or sometime the price decided the supply and demand.
Features of capitalism
(1)Right to private property: In the capitalism system individuals and entity can acquire their own property easily. ex-Buying a house
(2)Freedom of enterprise: In this economic system anybody can start a business easily as there exist no government intervention. ex-Starting a IT business
(3)Freedom of choice by consumer: In this economic system the consumers can consume anything whatever they wishes. ex-Buying any mobile phone
(4)Profit motive: Individual and entity can consume profit as much as they can
(5)Competition: As there anybody can start business and can consume profit as much as they can, therefore competition prevails everywhere.
(6)Importance of price system: In capitalism there exists a complex price system. Because supply & demand decides the price or sometime the price decided the supply and demand.
