ICSE Class 9 Answered

The main features of a capitalist economy are:

1. In a capitalist economy, individuals are free to own and control economic resources. Everyone is independent to choose his/her own business, profession and occupation.
2. The people’s economic activities may or may not be controlled by the government.
3. Prices of the commodities are determined by the interaction of demand and supply. The government does not interfere in the determination of the prices.
4. Profit and earning more and more income is the purpose of all economic activities.
5. Individuals have the right to earn income, acquire assets and also to retain them.
6. Consumer is the sovereign in a capitalist economy.
7. Inequality of income and class struggles are important features of this economy.