What type of economic system is characterized by private ownership of production?

The correct answer is characterized by a system where individuals or corporations own and control the means of production and distribution of goods. In this type of economic structure, decisions regarding investment, production, and distribution are primarily determined by competition in a free market. The profits generated from these enterprises belong to the owners, which encourages innovation and efficiency.

In contrast, socialism involves collective or governmental control over production and distribution to promote equal rights and wealth distribution among citizens. Communism takes this a step further, advocating for a classless society where all property is publicly owned, and each person works and is paid according to their abilities and needs. Feudalism is a medieval economic system where land was owned by nobles, and peasants worked the land in exchange for protection and a portion of the crops.

Understanding these distinctions is fundamental to grasping the variations in economic systems and their philosophical underpinnings.