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Capitalism
1. What is the primary driver of capitalism?
2. Who owns and controls the means of production in a capitalist
system?
3. How are prices determined in a capitalist economy?
4. Why is competition among businesses considered important in
capitalism?
5. What motivates individuals and businesses in a capitalist system?
6. How does capitalism provide consumers with choices?
7. What is one potential drawback of capitalism in terms of income
distribution?
8. Can you provide an example of a product or service that reflects
the principles of capitalism?
Capitalism - The Economic System of Opportunity

Capitalism is an economic system that has shaped the way goods and services are produced, distributed,
and exchanged in many countries. At a B2 level, let's explore what capitalism is and how it functions.

Capitalism: A Market-Driven Economy

Capitalism is an economic system that is driven by the free market. In this system, individuals and
businesses own and operate the means of production, such as factories, farms, and businesses. The prices
of goods and services are determined by supply and demand, and competition among businesses is a
fundamental aspect of capitalism.

Key Features of Capitalism

1. Private Ownership: In capitalism, private individuals or corporations have the right to own and
control property, including businesses. This allows for a diverse range of industries and
enterprises.

2. Market Competition: Capitalism encourages competition between businesses. This competition

is believed to result in better products and services and more affordable prices for consumers.

3. Profit Motive: In a capitalist system, individuals and businesses are motivated by the pursuit of
profit. This motivates innovation and efficiency.

4. Consumer Choice: In a capitalist economy, consumers have the freedom to choose from a
variety of products and services. This variety is driven by businesses seeking to cater to consumer
preferences.

5. Economic Inequality: Capitalism can lead to income inequality, where some individuals or
businesses accumulate significant wealth, while others have less.