Capitalist economy

Today we will see what is capitalist economy. The main characteristic of a capitalist economy is the existence of private enterprise in the main sphere of production and the operation of the price mechanism by which buyers and sellers determine what goods and services will be bought and sold in the market, in what quantities and at what prices. By private enterprise is meant a system of production that is based on private ownership of capital which is the general name for all kinds of property needed for production.

Capital can be physical assets like land, factories, and machines, or it can be money and other financial assets which are necessary for owning and operation firs and businesses. Production in the capitalist economy is controlled by owners of capital who operate for their private profit or gain.

However, in almost all modern societies the profit motive is controlled by the state and kept within a limit to meet certain social objectives such as protecting the consumers, safeguarding the minimum wages of the workers, or not allowing the environment to be over polluted.
This is all about capitalist economy. It simple means that you can have your own property and nobody is there to question about your property.