ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Any economy is capitalist as long as private individuals control the factors of production. A purely capitalist economy is also a free market economy, meaning the law of supply and demand, rather than a central government, regulates production, labor, and the marketplace.

Detailed explanation-2: -A market economy has freedom of choice and free enterprise. Private entrepreneurs are free to get and use resources and use them to produce goods and services. They are free to sell these goods and services in markets of their choice.

Detailed explanation-3: -The production of goods and services, investments, pricing, and distribution are in the hands of private enterprises. In a command economy, economic decisions concerning production and pricing rest with a central authority, such as a government. A market economy promotes free competition among market participants.

Detailed explanation-4: -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.