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Capitalist economy is that economic system where the means of production are owned by private individuals and profit is the main motive. There is no interference by the government in the economic activities of the economy. So it is also known as free market economy.

The main features of capitalist economy are being discussed below.

1. Private property - Under this economic system all the means of production are privately owned that is they come under private property.

2. Price mechanism - Capitalist economy is gained by price mechanism, here the prices are determined by interaction of demand and supply without the interference of government or any other external force.

3. Freedom of enterprise - In capitalist economic system every individual is independent to his means of production or in any occupation that he likes.

4. Sovereignty of consumer - Under capitalist economic system consumer plays the most important role. The entire production pattern is based upon the desires, wishes and demand of consumer.

5. Profit motive - The maximization of profit is main motive of the producer. It is profit that guide the production in capitalist economy system.

6. No government interference - Under capitalistic system government does not interfere in day to day economic activities. The producers and consumers are free to take decisions.

7. Self-interest - The inspiring force in this system is self-interest, it leads to hard work to earn maximum income by satisfying there consumer.