SSC MTS EXAM

Detailed explanation-1: -Capitalism refers to an economic system in which a society’s means of production are held by private individuals or organizations, not the government, and where products, prices, and the distribution of goods are determined mainly by competition in a free market.

Detailed explanation-2: -Capitalism includes personal ownership of property and open competition while a free-market system is ruled entirely by demand and supply with little to no government regulation.

Detailed explanation-3: -A capitalist economy is a type of free market economy; the profit motive drives all commerce and forces businesses to operate as efficiently as possible to avoid losing market share to competitors.

Detailed explanation-4: -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.