ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Some of the most important aspects of a capitalist system are private property, private control of the factors of production, accumulation of capital, and competition. Put simply, capitalist systems are controlled by market forces where capital goods are owned by businesses and private individuals.

Detailed explanation-2: -Central characteristics of capitalism include capital accumulation, competitive markets, price system, private property, property rights recognition, voluntary exchange, and wage labor.

Detailed explanation-3: -Merits of a Capitalist Economy The producers are more incentivized to produce their best goods and services due to the feature of the profit motive and the ability to hold private property. The economic growth of an economy is also faster and higher in a capitalist economy.

Detailed explanation-4: -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.