Capitalism

There are many aspects in which capitalism can be defined. One definition that capitalism can be is the economic system in which goods and services are produced, distributed, and consumed, through the mechanism of free market based on private property and profit motive. The three major components of capitalism are land, labor and capital. Land is the natural world in which the product is made. Labor is the work that was put into making and selling that product and lastly capital is the resources that are used to re-shape or enhance the product so that it can be at its final form. Furthermore into capitalism supply, demand and profit play a role in having a business. Supply is the total amount of resources and or products for sale at all prices. Sometimes their can be scarcity which is the limit of resources.


There are many labels in which capitalism is made up of but one of the most is the profit motive. Many businesses will try and get the best price from you for the product. Many will team up and join forces which is called "price fixings". This is when business join together to try and better their profits instead of competing. For example, as a class some pretended to sell lemonade and some people were the customers and the object was to find the best price you can get the lemonade for. Eventually at the end two merchants joined together and fixed the price. In conclusion, capitalism is an economic system in which products are produced, distributed and consumed through profit motive and a free market. Land, labor and capital are one of the many elements that help make up capitalism.