(i)Private Property: In this economy private property is allowed. All means of production like machines, implements, mines and factories etc. come under private property.
(ii) Price Mechanism: Capitalist economy is gained by price mechanism. Here prices are determined by the interaction of demand and supply without the interference of any kind by the government or any other external forces.
(iii) Freedom of Enterprise: In this system every individual is independent to his means of production in any occupation that one likes.
(iv) Sovereignty of that consumer: Under this system, consumer plays the most vital role. The entire production pattern is based on the desires, wishes and the demand of the consumer.
(v) Profit Motive: The maximization of profit is the main motive of the producer. Profit guides the production in this type of economy.
(vi) No Government Interference: Under capitalistic system, government does not interfere in day-to-day economic activities. This means producers and consumers are free to take decisions.
(vii) Democratic: The capitalistic system is more democratic in comparison to other economic systems as there are more changes to chancel according to new environments of the economy.
(viii) Self-Interest: The inspiring force in this system is self-interest. It leads to hard work and to earn maximum income by satisfying their consumers.