ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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.

Detailed explanation-2: -Who Makes Decisions in Capitalist Markets? Decisions over the use of resources are made by private individuals. Private property refers to both tangible and intangible assets that are owned by private individuals as against public property which is owned by a state or government.

Detailed explanation-3: -In socialist economies, important economic decisions are not left to the markets or decided by self-interested individuals. Instead, the government-which owns or controls much of the economy’s resources-decides the whats, whens, and hows of production. This approach is also referred to as central planning.

Detailed explanation-4: -Placing central importance on the individual, rather than the collective, is a classic hallmark of capitalism and is at the heart of the “pull yourself up by your bootstraps” narrative that capitalists find so compelling.