Element Description:
In a capitalist system, people and companies know that their ideas, ways of making things, and property will not be taken from them without their consent. This protection allows owners to make money from their ideas or businesses when customers choose to buy from them.
Governments also do not directly compete with private businesses. Governments are very large and have special powers, including a monopoly on violence. Because of these powers, governments can have advantages that private businesses and entrepreneurs do not have.
Vocabulary
Entrepreneur
Definition:
A person who starts and runs a business, often taking a risk to develop a new idea or product.
Intellectual Property
Definition:
Creations of the mind, such as inventions, designs, and original works, that are legally protected from being used by others without permission.
Monopoly
Definition:
A situation in which one company or seller controls most or all of a market.
Inquiry Questions