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Capitalism is an economic system in which the means of production of goods or services are privately owned and operated for a profit.
Definition of capitalism example. Capitalism definition examples capitalism is an economic system in which factors of production which include capital goods natural resources labor and entrepreneurship are owned by private individuals or businesses. Liberal democracies for example understand capitalism as a system where the production marketing and values of goods and services are established and conditioned by some form of free market. An economic political and social system in which property business and industry are. Operations are funded by profits and not controlled by a state government.
The definition of capitalism however is not exact. Capitalism requires that the government follows a laissez faire policy where it should not intervene in economic matters. 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. Examples the united states is one example of capitalism but it doesn t rank among the 10 countries with the freest markets according to the index of economic freedom.
It bases its ranking on nine variables including a lack of corruption low debt levels and protection of property rights. In capitalism individuals are given the freedom to operate.
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