Since the price system acts as an “invisible hand” for the allocation of resources, there is no need for intervention of any controlling authority.
2. Right to Private Property:
Another important feature of capitalism is the right to private property. The various means of production are under private ownership of individuals. Individuals can hold, use or sell them as they like.
3. Profit Motive:
Profit motive is at the heart of a capitalistic system. It is profit and not any altruistic feelings, which make an entrepreneur, invest in any economic activity.
4. Consumers’ Sovereignty:
In a free market economy the consumer is the king. The wishes and preferences of the consumer direct and determine the economic activities. The consumer occupies a key position in the economic system.