Capitalism

Definition

Capitalism is an economic system where private individuals rather than the state own and control property and businesses, operating for profit. 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 the open market and consumers, in which the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority.

Competition: In economics, it refers to 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.

Private Property: Rights that individuals or firms have to the exclusive use and control of their most tangible assets including land, buildings, machinery but excluding public property owned by government entities