Capitalism

Capitalism as an economic system is based on individual ownership of the means and distribution of production as well as individual purchasing decisions in the marketplace, which, in turn, drive producer decisions. Its reach and impact on society are spread far beyond the economic realm as it is an interacting cultural factor, is the foundation for political and legal systems, and can be a driving force behind technological innovations and change. Joseph Schumpeter defined entrepreneurs as individuals who focus on innovation in developing new products or services; hence, entrepreneurship is particularly attuned to a capitalistic economy. Because of its complexity, no universal definition of capitalism exists.

Economic systems must answer the basic questions about goods and services: what goods and services are to be produced, how ...