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: -Private interest owns the factors of production in a market economy. In a market economy, the means of production are privatized, which means that they are in the hands of individuals or businesses that use resources to provide goods and services.

Detailed explanation-3: -B. Capitalism, also called a free enterprise system, is based on private ownership and on individual economic freedom.

Detailed explanation-4: -While they may seem similar, these two concepts refer to different things. Capitalism is focused on the creation of wealth and ownership of capital and factors of production, whereas a free market system is focused on the exchange of wealth or goods and services.