Capitalism is an economic system characterized by private ownership of the means of production, especially in the industrial sector. Capitalism depends on the enforcement of private property rights, which provide incentives for investment in and productive use of productive capital.

What is capitalism characteristic?

Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, a price system, private property and the recognition of property rights, voluntary exchange and wage labor.

What is the most important characteristic of capitalism?

Some of the most important aspects of a capitalist system are private property, private control of the factors of production, accumulation of capital, and competition. Put simply, a capitalist system is controlled by market forces, while a communist system is controlled by the government.