capitalism, or free enterprise

Free enterprise capitalism is the system in which individuals own and operate businesses in a free market economy. It is characterized by free competition, free pricing, free entry, and free exit from any particular market segment. It allows businesses to innovate in order to increase their efficiency and profits, while consumers benefit from the resulting lower prices. The government typically has a limited role, often serving as a regulator to prevent unethical or dangerous practices and to provide public goods and services, such as infrastructure or security. Capitalism is preferred over other economic models for its combination of economic freedom, efficiency, and productivity.