Capitalism can be best described as what kind of system?

Capitalism is best described as an economic system where private individuals control production. This system is characterized by private ownership of the means of production and the operation of businesses for profit. In capitalism, individuals and companies are free to make economic decisions about what to produce, how to produce it, and for whom to produce, often influenced by market forces such as competition and consumer demand.

The emphasis on private ownership distinguishes capitalism from other economic systems like socialism or communism, where the government or the state may control production and resources. In a capitalist system, individuals can own property, enter contracts, and engage in voluntary exchanges. This leads to a dynamic economy where innovation and efficiency can flourish, as businesses strive to meet consumer needs while maximizing profits.