This text is for questions 12 to 14.
Capitalism is an economic system. Other names for capitalism are free-market economy and free enterprise.
That is, it is a system for dealing with money and wealth. In a capitalist country, citizens, not governments, own and run companies.
These companies compete with other companies for business. They decide which goods and services to provide.
They also decide how much to charge for the goods and services and where to sell them.
Baca Juga: Jawab Soal Materi Bahasa Inggris Kelas XI, Bab V Activity 15
Companies do all these things to make money for their owners.
People who use their money to start or to run companies are called capitalists.
Capitalism has existed since ancient times- for as long as people have bought and sold goods.
However, it gained importance in the 1500s with the growth of trade, industry, and banking.
During these time governments tried to encourage trade.