key term - Capitalism

Definition

Capitalism is an economic system in which private individuals rather than the state own and control property and businesses, operating for profit. Under capitalism, the production, distribution, and prices of goods and services are determined primarily by competition in a free market.

Related terms

Free Market:

An economic system where prices for goods and services are determined by open competition among businesses without government intervention.

Privatization:

The process of transferring an enterprise or industry from public sector (government) ownership to private individuals or organizations.

Competition:

The rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix - price, product, distribution, and promotion