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: -The means of production are owned and managed by private players in a capitalist economy, by the government in a socialist economy, and by both private players and the government in a mixed economy. Countries like China and Russia have a socialist economic system.

Detailed explanation-3: -Mercantilism focused on political supremacy through national wealth accumulation, particularly through acquisition of precious metals, high exporting, and low importing. Capitalism is an economic system focused on building profit for private individuals and corporations via production of goods and services.

Detailed explanation-4: -Capitalism is based on individual initiative and favors market mechanisms over government intervention, while socialism is based on government planning and limitations on private control of resources. Left to themselves, economies tend to combine elements of both systems.

Detailed explanation-5: -Free enterprise refers to how a free market system has minimal barriers regarding the exchange of wealth or transacting of goods and services. On the other hand, capitalism is primarily centered on the creation of that wealth or production of those goods.