ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Capitalism is an economic and a political system in which the factors of production are owned by private individuals or firms. The sole desire to earn a profit presides over their decisions. Capitalism supports a free-market economy that encourages ownership of private property and wealth creation.

Detailed explanation-2: -Capitalism is an economic system where private entities own the factors of production. The four factors are entrepreneurship, capital goods, natural resources, and labor. The owners of capital goods, natural resources, and entrepreneurship exercise control through companies. Individuals own their labor.

Detailed explanation-3: -Capitalism means that the factors of production are privately owned.

Detailed explanation-4: -In a capitalist economy, property and businesses are owned and controlled by individuals. In a socialist economy, the state owns and manages the vital means of production. However, other differences also exist in the form of equity, efficiency, and employment.

Detailed explanation-5: -In a market economy, almost everything is owned by individuals and private businesses-not by the government. Natural and capital resources like equipment and buildings are not government-owned. The goods and services produced in the economy are privately owned.