Hayat Ashraf

A capitalist economy, also known as a market economy or free-market economy, is an economic system based on private ownership of resources and the means of production. In a capitalist economy, individuals and businesses operate in a competitive market, pursuing their own self-interests and seeking to maximize their profits. Key features of a capitalist economy include: 1. Private Property Rights: Individuals and businesses have the right to own and control property, including land, capital goods, and intellectual property. This provides incentives for investment and innovation. 2. Profit Motive: The pursuit of profit is a driving force in a capitalist economy. Individuals and businesses aim to generate profits by producing and selling goods and services that are in demand. 3. Market Competition: Capitalist economies rely on competition among businesses to determine prices, allocate resources, and drive innovation. Multiple firms compete to attract customers, leading to efficiency and p...