Capitalist Economy Essay

The honorable of secret property means that productive factors such(prenominal)(prenominal) as land, factories, machinery, mines etc. ar below(a) underground ownership. The owners of these factors argon free to phthisis them in the manner in which they like. The authorities may however, put some restrictions for the win of the society in general independence of opening moveThis means that e rattlingbody engages in whatever economic activity he likes. much specifically he is free to tick off up any firm to farm goods.Freedom of choice for the consumersThis means that populate in a capitalistic sparing are free to spend their income as they desire. This is known as consumer independentty. Consumers are sovereign in the sense that makers produce save those goods which consumers are willing to buy.Profit agent In a capitalist economy, it is the attain motive which forces or induces people to decease and produce Competition Competition prevails among the transport ers to sell their goods and among buyers to obtain goods to satisfy their wants. Advertisement, price cutting, subtraction etc., are found to be the sane methods of competition in any capitalist economy.Inequalities of incomes There is generally a great gap of income between the rich and the sorry in the income which mainly arises due to unequalized distribution of property in such economies.Merits of capitalist economyThe undermentioned are the merits of capitalist economy1.To attract the consumer, the producer is in a position to cause out newer and finer varieties of goods 2.The existence of private property and the driving force of amplification motive results in mellowed ideal of living 3.Capitalism works automatically by the price mechanism 4.The freedom of enterprise results in supreme efficiency in production 5.All activities under capitalism whoop it up the maximum amount of liberty and freedom 6.Under capitalism freedom of choice brings maximum satisfaction to consumers 7.Capitalism preserves fundamental rights such as right to freedom and right to private property 8.It rewards men of endeavour and enterpriseCountry as a whole benefits through growth of clientele talents, development of research etc.,Demerits of capitalismThe following are the demerits of capitalism1.In capitalism the terrific wealth produced is apportioned by a few. This causes rich richer and poor, poorer 2.Welfare is non protected under capitalism, because here the aim is profit and not the welfare of the people 3.Economic instability in terms of over production, economic depression, unemployment etc., is very common under capitalism 4.The producer spends huge amounts of money on advertisement and sale promotion activities like fairs, exhibitions etc., 5.Class impinge arises between employer and employee and they will be paying low wages and this leads to strikes and lock outs 6.Productive resources are misused under capitalism and they are used for the produc tion on luxuries as they are bound to bring high profits 7.Capitalism leads to the formation of monopolies and8.There is no security measure of employment for the workers and employees under capitalism.Referencehttp//classof1.com/homework-help/economics-homework-help/