Which economic system is characterized by private ownership and the free market?

The economic system characterized by private ownership and the free market is capitalism. In capitalism, individuals and businesses own the means of production and operate them for profit. This system emphasizes the importance of market forces—supply and demand—controlling the production and pricing of goods and services.

In a capitalist economy, consumers have the freedom to choose how they spend their money, and producers compete with one another, which can lead to innovation and efficiency. The role of the government in capitalism is typically limited to regulating the market to prevent monopolies and uphold laws designed to protect consumers and ensure fair competition.

Comparatively, socialism focuses on collective ownership and often involves significant government intervention in the economy, aiming for equitable distribution of resources. Communism goes further by advocating for a classless society where all property is publicly owned, eliminating private ownership altogether. Feudalism, on the other hand, is an economic and social system structured around rigid hierarchies typically based on land ownership and does not align with the principles of free markets or private property as seen in capitalism.