It is a market-based economy made up of buyers (people) and sellers (private or corporate-owned companies).The goods and services that are produced are intended to make a profit, and this profit is reinvested into the economy.The government should not interfere in the economies of the free market, meaning, the market determines investments, production, distribution and decisions, and government interference is only allowed when making and enforcing rules or policies governing the conduct of business.There is a need for continual production and purchase for a capitalistic economy to operate efficiently.Capitalists believe that government does not use economic resources as efficiently as private enterprise.