Definition : An economic systen in which primary reliance is placed upon private business operating in competitive markets tp satisfy consumer demands and to maintain equilibrium in the national economy and in which government action in this respect is restricted to protecting the rights of individuals rather than acting as a direct economic force.
1. Economic Freedom
An eagle generally has the freedom to choose when to fly, to land, sleep, and eat. In a similar way, economic freedom is the ability to choose produce, sell, and use your own resources while respecting others' rights to do the same. The eagle represents economic freedom in that it can do whatever it wishes, as long as it doesn't infringe upon others or its own freedom is unhampered.
2. Voluntary Exchange
The picture represents voluntary exchange in that it requires agreement and a mutual benefit to both or multiple parties to be considered a voluntary exchange. If an exchange requires force in order to come to a conclusion and isn't more beneficial to the parties involved after than before the exchange, it could not be considered a voluntary exchange.
3. Private Property
Private property is a legal designation of property by non-governmental legal entities. Basically tangible or intangible things over which their owners have exclusive rights. The image illustrates that the property and/or things within it, can be described as private property either from the government, corporate or the public spheres depending upon the owner of said property.
4. Profit Motive
Profit motive is simply stating that the reason for a businesses existence is to turn a profit. Just as in the picture, a business will need to wind up or give employees motivation in order to produce a profit.
Competition can be found throughout nature since the beginning of time. Just as animals compete for resources available to them, competition is a vital part of capitalism. In economics this principle is seen as the rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying elements of the marketing mix : price, product, distribution, and promotion.