What is the economic system based on private ownership of production?

The economic system characterized by private ownership of production is known as Capitalism. In a capitalist system, individuals and businesses own the resources and businesses that create goods and services. This system emphasizes individual rights, opportunity for profit, and the idea that competition drives innovation and efficiency in the economy.

Private ownership means that individuals can buy, sell, and trade property and resources as they see fit, without drastic interference from the government. In Capitalism, the marketplace largely determines prices and the distribution of resources based on supply and demand. This economic framework allows for personal initiative and entrepreneurial endeavors, encouraging individuals to invest and create businesses that can lead to economic growth.

In contrast, other systems outlined in the choices have different frameworks. Communism and socialism involve varying degrees of collective or state ownership and control over production and resources, aiming to reduce economic inequality and distribute wealth more evenly among all members of society. Feudalism is a historical system based on land ownership and servitude, which does not align with the modern concepts of private ownership in an economic context.

Thus, Capitalism stands out as the distinct system primarily based on private ownership and individual economic freedom.