What economic system is characterized by private ownership and free markets?

The economic system characterized by private ownership and free markets is capitalism. In a capitalist system, individuals and businesses have the freedom to own property, make personal economic choices, and compete in markets with minimal government intervention. This environment fosters innovation and efficiency, as companies strive to meet consumer demand and maximize profit.

Capitalism also allows for the establishment of prices based on supply and demand, meaning that the market largely determines the value of goods and services rather than being controlled by a central authority. This system is fundamentally different from socialism, where the government typically owns and controls the means of production, or communism, which advocates for a classless society where all property is publicly owned. Additionally, feudalism represents a much older social and economic structure characterized by land ownership tied to loyalty and service, not the personal and economic freedoms seen in capitalism.