What economic system is characterized by private ownership and a free market?

The correct answer is associated with capitalism, which is defined by private ownership of property and the means of production, alongside a system where prices and production are determined by free market forces. In a capitalist economy, individuals and businesses have the freedom to operate and compete with minimal interference from the government. This system encourages innovation and competition, allowing for a wide variety of goods and services to be produced and consumed based on supply and demand.

In contrast, socialism emphasizes public or collective ownership of the means of production, aiming for wealth distribution that benefits all members of society rather than individual profit. Communism goes even further by advocating for a classless society where all property is owned communally, eliminating private ownership altogether. Feudalism represents a pre-capitalist societal structure based on land ownership and hierarchical relationships, where peasants worked the land under the protection of a lord rather than operating in a free market. Each of these alternatives emphasizes different approaches to ownership and economic organization, which is why capitalism distinctly stands out for its principles of private ownership and market-driven economics.