Capitalism is a system of economic organization, based on private property and freedom of enterprise and contract, in which decisions are coordinated not through coercive mechanisms but through the market. “Economic systems” is the name we give to the different ways in which economic decision making may be organized in a society. Such systems try to answer questions such as what goods and services to produce, how much of each good or service to produce and in what way to produce it, how to distribute the output among all those who have contributed to producing it, how to ensure that the standard of living of the population steadily improves, and so on. And all that has to be done under the real-life conditions of scarcity, ...

  • Loading...
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles