The term capital refers to a fixed factor of production, which does not change in
the short run. Capitalist refers to an owner of capital. Production of goods and
services will belong to the capitalist. Capitalism is an economic system where there
is several exchangeable terms including capitalist mode of production, economic
liberalism, free-enterprise economy, laissez-faire economy, market economy,
market liberalism and self regulating market. Free market capitalism consists of a
free price system where supply and demand reaches a point of equilibrium without
government intervention. Productive enterprises are privately owned. The rule of
the state is limited to protecting property rights.