Question

What type of economy is capitalism?

Answer 1

Capitalism is an economic system in which private individuals or businesses own capital goods. At the same time, business owners (capitalists) employ workers (labor) who only receive wages; labor does not own the means of production but only uses them on behalf of the owners of capital.

Answer 2

Answer: Economic system

Explanation: Capitalism or capitalist economy is referred to as the economic system where the factors of production such as capital goods, labor, natural resources, and entrepreneurship are controlled and regulated by private businesses.