An economic system in which the private individuals or businesses control the modes of production is called capitalism. It is different from the command economy i which the government plays key role in planning the economy. The laissez-faire capitalism is the purest form of capitalism. In laissez-faire capitalism private individuals can decide where to invest money, what to produce and set the price. There are no checks and controls in laissez-faire economy.
Capitalism is the guiding economic philosophy of the free enterprise system. It is based on private property and free enterprise. Hope this answers the question. Have a
