Capitalism is an economic-political system in which private citizens are free to go into business for themselves, to produce whatever they choose to produce, and distribute what they produce.

Political-economy system in which the government controls the use of the country's factors of production. How scarce resources are used to satisfy the many wants of people is decided, in part, by the government.

Types of political economy systems

Capitalism

Socialism

Comunism

Almost all of a nation's factors of production are owned by the government. Decisions regarding what to produce, how much to produce, and how to divide the results of the production.