John owns a shoe store. At the end of each month, John decides what he wants to do with the profits. What type of economic system is this? * Civics question
The economic system is Capitalism also called free market economy.
Explanation:
In capitalism, trade and businesses are controlled by an individual or privately owned for profit. A Person or a companies makes almost all decisions, while most of the properties are owned by them. The means of production is privately owned by John and he operates the shoe store for profit. Since he is the owner, the capital profit belongs to him and he can decide on what to do with the profit.
