Final answer:
Capitalism, also known as the free market system or free enterprise system, describes an economic system with private ownership of production and limited government intervention. In the United States, capitalism functions with some government oversight, varying in degree across industries. Private investment for profit and economic freedom are central to capitalist economies.
Step-by-step explanation:
Another term for capitalism is a free market system or free enterprise system. These terms describe an economic system where individuals or corporations own the factors of production and operate for profit, having the freedom to make their own decisions in the interest of competition and economic efficiency. In such a system, there is limited government intervention in the marketplace.
However, the United States, while fundamentally capitalist, does involve government oversight and regulation to various extents in certain industries, as well as for the protection of workers' rights and environmental safety.
In a capitalist economy, private individuals or companies invest capital into business ventures to produce goods and services for consumer markets with the intention of making a profit.
The investors are generally entitled to a share of the profits after production and distribution costs. Profits are often reinvested to grow the business or to start new ventures. Although capitalism is marked by private ownership and profit motive, there remains a contentious debate regarding the role of government intervention in the economy.