A capitalist economy is an economic system where private individuals or businesses own and control the production of goods and services. In this system, decisions about investment, production, and distribution are driven by profit motives and market competition. Prices are determined by supply and demand, allowing consumers to influence what is produced. In a capitalist economy, the role of the government is generally limited, focusing on maintaining the rule of law and protecting property rights. This encourages innovation and efficiency, as businesses strive to meet consumer needs while maximizing their profits. Examples of countries with capitalist economies include the United States and Germany.