Is this definition for capitalist economy correct for 1 mark ? If not can you suggest one ?
Dear Student,
Your definition seems incomplete. Here is an alternative.
In a capitalist economy, the capitalist or the private entrepreneurs control the economic activities. They organise and undertake production activities with the sole motive of profit making. In such an economic system, the government does not interfere in the economic activities. That is, the role of the government is limited only to defence and maintaining law order, and government do not interfere in the economic activities. This system is also known as Free Market Economy or Laissez-Faire System.
Regards
Your definition seems incomplete. Here is an alternative.
In a capitalist economy, the capitalist or the private entrepreneurs control the economic activities. They organise and undertake production activities with the sole motive of profit making. In such an economic system, the government does not interfere in the economic activities. That is, the role of the government is limited only to defence and maintaining law order, and government do not interfere in the economic activities. This system is also known as Free Market Economy or Laissez-Faire System.
Regards