ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The capitalist economy provides the incentive to innovate in the economy. The private firms focus more on the efficiency of production and supply goods which are in demand. Thus, it leads to the development of new products and technology.

Detailed explanation-2: -Capitalism is an economic system providing free choice and individual incentive for workers, investors, consumers, and business enterprises. A free enterprise system is an economic system based on private ownership of the means of production and on individual economic freedom.

Detailed explanation-3: -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-4: -A market economy is an economic system in which economic decisions and the pricing of goods and services are guided by the interactions of a country’s individual citizens and businesses.