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

The economic system characterized by private ownership and a free market is capitalism. In capitalism, individuals and businesses have the right to own property and operate for profit. Market forces, such as supply and demand, drive the economy, determining the prices of goods and services. This system encourages competition and innovation, allowing individuals the freedom to pursue economic opportunities.

In contrast, socialism involves collective or governmental ownership of the means of production, aiming to distribute wealth more evenly among the population. Communism takes this a step further, advocating for a classless society where all property is communally owned and aimed towards achieving equality. Feudalism, an earlier form of economic and social structure, is based on a rigid class system and a hierarchy of land ownership, which does not promote free markets or individual ownership in the same way that capitalism does. Thus, capitalism distinctly highlights individual rights and market-driven economic activities.