What are the features of a capitalist economy?
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Features of a capitalist economy:
- Private ownership of factors of production..
- Profit is the motive for production.
- Economic decisions depend upon the market forces of demand and supply, and the consumer is sovereign.
- Only those goods are produced which are in demand. Thus, this type of economic system neglects the poor, who do not constitute the demand, since they lack the purchasing power.
- It is also called "free market economy", since government does not interfere in the economic decisions.
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