Capitalism

posted by .

Hi. I would like to know what Capitalism is in simple terms.

From Wikipedia, this is what it says:

Capitalism is an economic system in which the means of production are privately owned and operated for profit.

Could I get more information please.

  • Capitalism -

    Under capitalism, most businesses are owned by private individuals and companies. They own the factories, pay the workers, and make profits.

  • Capitalism -

    The word "capitalism" comes from the meaning of "capital" in business.

    If you have an idea for a business, and you get 10 other people to agree to lend you money to get started, the money they lend you is your capital. They must like your idea AND believe it will be successful -- and if your idea is successful, you'll be able to repay each person over time.

    Some people don't have to borrow money to start their business. They save up until they have what they need. It's still their capital, though, except there would be no one to have to repay.

    That's VERY simplistically put, but it's the basics.

  • Capitalism -

    Thanks a lot to both of you. I feel like I'm beginning to understand this economic stuff better than before:)

  • Capitalism -

    You're wise to make such an effort to understand these concepts! :-)

    And you're welcome.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. capitalism

    What are the pros and cons of capitalism?
  2. economics

    what are the characteristcs or features of capitalism. http://en.wikipedia.org/wiki/Capitalism
  3. social studies

    the theory that government should not intefere in economic affairs is known as?
  4. Social studies

    Could you please check these other sets of terms. Here are the terms: scarcity cost benefit analysis marginal revenue needs incentives economy opportunity cost variable costs capitalism marginal cost food, clothing,shelter, and other …
  5. Economics

    Do you know any websites where i can find out about capitalism in Switzerland?
  6. Geography

    In simple terms can you please explain to me what free market capitalism means?
  7. history

    "Rather than a radical departure from capitalism, the New Deal was a conservative defense of capitalism." Assess the validity of this statement.
  8. Social

    Hi, I'm making a cartoon about capitalism for my class (3-4 slides). The concept I want to talk about is how capitalism allows people to own land and invest in their own capital. I'm not sure what the air bubbles to say, since it says …
  9. history

    Discuss how the rise of capitalism led to the development of communism. I put: • Capitalism was where individuals and business firms would carry out all factors of production and trade. The owners would control the prices of their …
  10. United States Government

    Capitalism is a system that may be seen as the economic equivalent of what political ideology?

More Similar Questions