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'''Capitalism''', also called a '''free market economy''' is an economic system where the investment of capital, and production, distribution, income, and prices are determined not by government (as in [[socialism]]) but through the operation of a competitive market where decisions regarding transfer of money, goods (including capital goods), and services are voluntary and private rather than regulated and mandated by government (see [[law of supply and demand]]). It cannot put a price on market externalities which are the costs that are forced upon society. If externalities, such as pollution were taken into account the overall price of goods and services would be increase. This is because price in capitalist societies do not reflect the true cost of production.