What is capitalism, features, advantages and disadvantages?
Answers
Answer:
Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Characteristics central to capitalism include private property, capital accumulation, wage labor, voluntary exchange, a price system and competitive markets
Explanation:
The advantages of capitalism include:
Consumer choice - Individuals choose what to consume, and this choice leads to more competition and better products and services.
Efficiency of economics - Goods and services produced based on demand create incentives to cut costs and avoid waste.
disadvantage of capitalism
Monopoly power. Private ownership of capital enables firms to gain monopoly power in product and labour markets.
Monopsony power.
Social benefit ignored.
Inherited wealth and wealth inequality.
Inequality creates social division.
Diminishing marginal utility of wealth .
Boom and bust cycles.
Main Features of Capitalism:
Private Property and Freedom of ownership:
Right of Private Property:
Price Mechanism:
Profit Motive:
Competition and Co-operation Goes Side by Side:
Freedom of Enterprise, Occupation and Control:
Consumer's Sovereignty:
It arises Class Conflict