Capitalism is an economic and social system characterized by private ownership of the means of production, distribution, and exchange of goods and services. In a capitalist system, economic activities are primarily driven by individuals, private businesses, and corporations seeking profit.

Key features of capitalism include:

1. Private Ownership: In a capitalist society, individuals or entities have the right to own and control property, resources, and businesses. This ownership extends to factories, land, machinery, and other productive assets.
2. Market Economy: Capitalism relies on a market-based economy where prices of goods and services are determined through supply and demand interactions. This means that buyers and sellers negotiate prices and trade freely in competitive markets.
3. Profit Motive: Capitalism is driven by the pursuit of profit. Individuals and businesses aim to generate revenue that exceeds their costs, resulting in financial gains. This profit motive encourages innovation, entrepreneurship, and efficiency.
4. Competition: Competition among businesses is a fundamental aspect of capitalism. The presence of multiple competing firms encourages innovation, lower prices, and better quality products and services.
5. Freedom of Choice: Consumers in a capitalist system have the freedom to choose from a wide range of goods and services offered by different producers. This choice is based on individual preferences and purchasing power.
6. Limited Government Intervention: Capitalist systems generally involve minimal government interference in economic activities. The role of the government is often limited to enforcing contracts, protecting property rights, and maintaining a legal framework for business operations.
7. Wage Labor: In capitalist societies, individuals typically work for wages or salaries. Labor is considered a commodity that is bought and sold in the labor market.
8. Income Inequality: While capitalism can lead to economic growth and prosperity, it can also result in income inequality. The distribution of wealth and resources is often uneven, with some individuals or groups accumulating significant wealth while others have less.
9. Supply and Demand: Prices are determined by the interaction of supply (the quantity of a good or service available) and demand (the desire for that good or service). Prices rise when demand exceeds supply and fall when supply exceeds demand.
10. Division of Labor: Capitalist economies often involve specialization, where individuals and businesses focus on producing specific goods or services in which they have a comparative advantage.

It’s important to note that there are different variations of capitalism, and the extent of government intervention, social safety nets, and regulations can vary from one country to another. While capitalism has led to economic growth and technological advancements, it has also been subject to criticism for potential negative social and environmental consequences, including income inequality and environmental degradation.