Q.What do you mean by Capitalism ?

Capitalism is a free-market economic system based on private ownership of the means of production and the profit motive, where the market decides what, how and for whom to produce.

Capitalism (also called a free-market or laissez-faire economy) is an economic system with the following main features studied in the Tamil Nadu HSC Commerce syllabus:

• Private ownership: the means of production — land, factories and capital — are owned and controlled by private individuals and firms.
• Freedom of enterprise: producers and consumers are free to buy, sell, produce and consume as they wish.
• Profit motive: profit is the driving force behind all economic activity.
• Price/market mechanism: the questions of what to produce, how to produce and for whom to produce are settled automatically by the forces of demand and supply.
• Minimum government interference: the state plays a limited (regulatory) role. …