The economic system based on private ownership is known as capitalism. In capitalism, individuals or corporations own and operate businesses, and the production of goods and services is driven by profit motives. In a capitalist economy, market forces such as supply and demand primarily determine prices and resource allocation. This system encourages competition and innovation but can also lead to economic disparities. While capitalism exists in various forms worldwide, the core principle remains the same: private individuals or entities have the rights to trade and profit from their investments.