Political Economy Economic Systems Questions
The key features of a capitalist economy include private ownership of the means of production, free market competition, profit motive, and limited government intervention. In a capitalist economy, individuals and businesses have the right to own and control property, including land, factories, and resources. The market is driven by supply and demand, with prices determined by the interaction of buyers and sellers. The profit motive incentivizes individuals and businesses to maximize their own economic gain. Additionally, the government's role is typically limited to enforcing property rights, ensuring fair competition, and providing basic infrastructure and public goods.