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Capitalism

Definition

An economic system characterized by private ownership of goods/services production with profit-making as primary aim. Prices are determined by competition in free market without government intervention.

Analogy

Capitalism is like a competitive sports game where players (businesses) compete against each other, and the audience (consumers) decides who wins based on their performance. The government acts as the referee, ensuring fair play but not interfering in the game.

Related terms

Free Market: An economic system where prices for goods and services are determined by open competition between businesses without government intervention.

Private Property: This refers to property owned by individuals or companies, not by the government or community.

Profit Motive: It's an incentive that encourages entrepreneurs to take risks in developing new products or services with the hope of making a profit.