What economic system is characterized by private ownership of the means of production?

The economic system characterized by private ownership of the means of production is capitalism. In this system, individuals or companies own and control the resources and businesses necessary to produce goods and services. This ownership allows for the ability to make decisions regarding production, investment, and the distribution of profits.

Capitalism operates on the basis of market mechanisms, where prices are determined by supply and demand. The profit motive drives innovation and the efficient allocation of resources, as businesses seek to maximize their profits by providing goods and services that consumers desire. This system encourages competition and typically leads to economic growth and development.

Some other systems, like socialism and communism, emphasize collective or state ownership of production. In socialism, the state may manage or own major industries, while in communism, private ownership is entirely abolished in favor of a classless society where property is communally owned. Feudalism, on the other hand, was a system based on land ownership and labor in exchange for protection, significantly different from the principles of capitalism.