The two fundamental features of capitalism are private ownership of productive resources and market-based price mechanisms. Private ownership means individuals and corporations own capital goods, land, and businesses rather than the state controlling them. Market mechanisms mean prices are determined by supply and demand rather than central planning, allowing voluntary exchange and competition to allocate resources. These features work together: property owners pursue profit by responding to market prices, which signal where resources are most valued. This creates incentives for innovation, efficiency, and specialization. However, economists and thinkers emphasize different core features depending on their framework. Some highlight the profit motive and capital accumulation as central, while others stress free markets and consumer choice. Some add wage labor as essential—the separation of workers from ownership of production means they sell their labor for wages. Others emphasize the role of competition and entrepreneurship. Adam Smith's classical formulation stressed division of labor and self-interest operating within markets. Modern capitalist economies also typically include government regulation, property law enforcement, and social safety nets, making real-world capitalism more complex than the pure theoretical model. When discussing 'two features,' the most commonly cited pairing in introductory contexts remains private property ownership and market exchange, as these distinguish capitalism most clearly from command economies or traditional subsistence systems.