Merits of Capitalism:

 

Merits of Capitalism:

 1) Full Allocation of Resources:

                                                                         Everyone has economic freedom, that's why resources are fully utilized in personal interest. Moreover, entrepreneur tries to get optimal level of production to maximize his profit.

 2) Sense of Ownership:

                                                          Sense of ownership creates self-confidence, because all the resources are the personal property of the people and everyone tries his level best to enhance business and productivity.

 3) Inventions and Innovations:

                                                                           Everyone gets wages according to one's marginal productivity and efficiency. So hard working, prudent and efficient people excel and it heralds of innovations and inventions.

 4) Self Confidence:

                                             Availability of commodities is according to people's choice so it enhances their confidence and self-respect.

5) Durable System:

                                             This system is durable and long lasting because it has experience and competed with economic instability of various countries.