Understandable Definition Of Capitalism

1 the owners of capital goods natural resources and entrepreneurship exercise control through companies.

Understandable definition of capitalism. Capitalism is an economic system characterized by private ownership of the means of production especially in the industrial sector. Capitalism definition an economic system in which investment in and ownership of the means of production distribution and exchange of wealth is made and maintained chiefly by private individuals or corporations especially as contrasted to cooperatively or state owned means of wealth. Capitalism is an economic system where private entities own the factors of production. 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.

Individuals own their labor. The four factors are entrepreneurship capital goods natural resources and labor. Capitalism offers the greatest level of freedom and flexibility to business owners.