Capitalism

The video explains capitalism as an economic system where private firms own production means, contrasting it with command economies where the government controls production. Capitalism features decentralized decision-making, allowing private entities to respond to supply and demand, setting prices through market forces. While free enterprise suggests minimal government intervention, in reality, all countries have some government regulation. Capitalism is characterized by more free enterprise than command economies.

How does a planned economy differ from a capitalist economy?

What is the primary characteristic of capitalism as described in the text?

What role do supply and demand play in setting prices in a capitalist system?

Explain the concept of free enterprise as mentioned in the text.

Why is it stated that there is no purely free enterprise economy in the world?