Which 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 economy, individuals and businesses own the means of production and are free to operate them for profit. This system allows for voluntary exchanges and competition, which can drive innovation and efficiency. Prices are determined by supply and demand interactions in the marketplace, which helps allocate resources efficiently.

In contrast, socialism places greater emphasis on collective ownership and usually involves significant government intervention in the economy. A mixed economy incorporates elements of both capitalism and socialism, where there are private ownership and government regulations. A command economy is characterized by government control over production and resource allocation, leaving little room for private ownership or free markets. This delineation clearly identifies capitalism as the system that prioritizes private ownership and a market-driven approach.