A capitalist economy is a system where private individuals or businesses own and control the production of goods and services. In this system, decisions about what to produce, how to produce, and for whom to produce are driven by market forces, such as supply and demand. Profit motives encourage innovation and efficiency, leading to a variety of products and services available to consumers. In capitalist economies, competition among businesses helps to regulate prices and improve quality. Governments may intervene to some extent, but the overall framework relies on free markets. Examples of capitalist economies include the United States and Germany, where entrepreneurship and investment play crucial roles in economic growth.