capitalist economy

• Sistema económico basado en la propiedad privada de los medios de producción, la asignación de recursos mediante el mercado y la búsqueda de beneficio a través de la competencia.

An economic system characterized by private ownership of the means of production, market-based allocation of resources, and the pursuit of profit through competition.

1. Economic system based on private ownershipB2formal

   An economic system where trade, industry, and the means of production are largely or entirely privately owned and operated for profit.

   economía capitalista

   • In a capitalist economy, prices are determined by supply and demand.
   • The United States is often cited as a prime example of a capitalist economy.
   • A capitalist economy encourages competition and innovation among businesses.

2. Market-driven systemB2formal

   An economic model where decisions about investment, production, and distribution are guided by the price signals created by market forces.

   economía capitalista

   • The transition from a planned to a capitalist economy was challenging for many countries.
   • A capitalist economy relies on the free market to allocate resources efficiently.
   • Critics argue that a capitalist economy can lead to significant income inequality.