Can You Explain Capitalism And Its Features?

Question

Can You Explain Capitalism And Its Features?

12 Answers

Answer Question

Answer 1

Its a social and economic system where means of production are privately owned and labor is paid in wages. There is no interference from the government but the government's role stops at making policies which can enable the market to operate freely.In capitalism the forces of demand and supply determine the allocation of resources. Profit is the driving engine in I capitalistic economy .

Answer 2

Essential Features of capitalism:

1)Right of private property.2)Freedom of enterprise3)Competition4)Self interest5)Freedom of choice 6)Consumer`s sovereignty7)Importance of profit8)Price mechanism9)Role of government10)Economic fluctuations

Answer 3

Capitalism is an economic system where all the resources of the economy like land, business and capital etc, are owned by the persons. The persons make the decisions regarding production of the goods, making of expenditures, saving and investment.
The capital economy is also termed as natural economics system, free enterprise economy, and system of price mechanism, system of invisible hand or laicizes fair economy. In this economic system people have right to get, to organize and to produce the goods and services with the resources at their disposal.

The consumers can purchase the goods and services what they like, while the laboring class can opt for any career in accordance with their capabilities and skill in capitalism the consumer is like a voter who casts his vote when he purchases goods and services with the help of money and the goods he purchases are like the candidates whom he is electing with the help of economy. This means that capitalism operates under consumer's sovereignty.

In capitalistic economies the major share of natural, physical and financial resources is possessed by the individuals. Such individuals have the exclusive rights to use, sell, exchange and transfer these resources.
The working of capitalistic economic system is dependent upon self interest and invisible hand.

Answer 4

Capitalism is an economic system that is based on the principle of free markets. The means of production and wealth is held by the private sector and the government intervention is minimal. Land, labor and capital are freely accessible to individuals and private corporations and the prices are determined by the market not the government. People have the right to choose a product that they want instead of being forced to buy a certain product. People have the right to own property and market is governed by the principles of demand and supply, only the goods demanded by the people are produced. Although some of the functions like infrastructure development are still the responsibilities of the government, it generally does not intervene in the market. Capitalism wants to have more profits and lower costs so they look for sources of production that may be even outside the home country.

Answer 5

Capitalism is an economic system based on free markets, private ownership of business and industry and the profit motive.
Competition, economic freedom, personal responsibility, consumerism and respect for profit encouraged many governments to embrace capitalism rather than to keep up with the mercantilism system [(European) a Eurocentric economic policy whereby European monarchs increase thier wealth through trade].

Answer 6

Capitalism is an economic and social system in which capital, the non-labour factors of production(also known as the means of production), is privately owned means individuals and private firms are sole owner of all firms and means of production. The owners are free to use their property for making profits. In this economy, employers are free to choose their employee and employees are free to choose their employers.
For Example:- All countries of Europe like France, Germany, Russia, Italy, Singapore, Malaysia as well as Japan, Brazil, America follow capitalism

Answer 7

Company owners decide how much to pay workers. Also called a free market economy. Companies can earn profits or money. All busnesses are privately owned

Answer 8

Capitalism is an inherently expanding social order in which the goals and powers of profit-seeking private investors are the most important force shaping society.

Capitalists hate free markets, which force them to pass along technological advances in the form of lower prices. To protect themselves from that, in the late 1800s, leading capitalists lobbied state legislatures in the USA to win the right to form the giant conglomerate corporations that have since been the major units of the system. Thomas Edison explained this to The New York Times in 1892, when he was merging Edison Electric with rival Thomson-Houston Electric to form General Electric.

Capitalism presumes that the Earth can sustain endless economic expansion and resource consumption.

Answer 9

There are two type of capitalism
1 over capitalism
2 under capitalism

both have some merits and demerits
if you want to learn more pls search philip Kohler or managerial economics on net.

Answer 10

 Business capital is privately owned;
 Buyers and sellers control the economy;
 Free will to spend money; and
 Minimum government supervision (laissez-faire).

Answer 11

Capitalism generally refers to an fiscal system in which the earnings of production are mostly clandestinely owned and operated for proceeds, and in which investments, distribution, takings, produce and pricing of goods and services are determined from opening to end the function of a on the house market. It is usually painstaking to involve the correctly of individuals and groups of individuals acting as "permissible persons" or corporations to arrangement property goods, toil, land and money.

Capitalist profitable practices became institutionalized in Europe between the 16th and 19th centuries, although little features of capitalist organization existed in the ancient globe. Capitalism has emerged as the Western world's dominant economic system in view of the fact that the send regrets of feudalism, which eroded traditional political and pious restraints on consumerist exchange.

Capitalism gradually spread from Europe, particularly from Britain, across political and educational frontiers. In the 19th and 20th centuries, free enterprise provided the main, but not elite, means of industrialization all the way through much of the world. The notion of capitalism has imperfect investigative value, given the great variety of historical cases over which it is handy, varying in time, geography, politics and culture.

Answer 12

Taken from: www.businessbookmall.com on 8/31/2009

I. Basic characteristics of capitalism

(market economy)
     A. Economic systems determine what to produce, how to produce,

and who will receive production.

B. An economic system must also

have the ability to adapt to changing economic environments.
For example,

How will America's economic
system adapt to changes caused by September 11?

     C. Adam Smith

1. His book, The Wealth of Nations,
was the first description of capitalism.

2. Published in 1776, it described capitalism as it was practiced in 18th
century England.

    D. Basic characteristics described by Adam Smith

1. Private property-the right to own resources and bequeath property

2. Freedom of enterprise-own
a business

3. Freedom of economic choice-work/not work, spend/not
spend

4. Role of self-interest

a. People are by nature economic creatures

b. Self-interest is a fundamental characteristic of people

5. Competitive market system

a. Many buyers and sellers

b.
Market participants, buyers and sellers, have little control over price

c. Competition performs the organizing and controlling

functions for a market economy

6. Limited government
("laissez-faire") refers to the idea that government should let
markets be with a hands-off philosophy)

   E. Creative destruction described by 20th century
sociologist/economist Joseph Schumpeter, was an important addition

to the idea of
capitalism.

1. Change involves the creation of improved economic
structures based on technology and the destruction of inefficient

economic structures.

2. Capitalism allows this
destruction to take place.