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characteristics of a capitalist economy
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Capitalism is an economic system based on private ownership of the means of production, where decisions regarding investment, production, and distribution of goods and services are made by individuals and businesses. Adam Smith, known as the 'Father of Modern Economics', is credited with developing the concept of capitalism. Capitalism has both pros and cons, including efficient resource allocation, economic growth, and inequality. It operates through the
market mechanism, where supply and demand determine prices.
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