Capitalism is that economic system where the main motive is profit-making. In this system, resources are in private hands. Other features of capitalism include: Through market mechanisms, the problems of the economy are solved. Goods that are in demand are only produced. Goods distribution is not done on the basis of what people need but on the basis of their affordability or their willingness to purchase. In this type of economy, helpless or poor persons are worst affected as they cannot get things easily due to their low purchasing power.