The economic system characterized by private ownership is capitalism. In a capitalist economy, individuals and businesses own and control property and produce goods and services for profit. Market forces, such as supply and demand, determine prices and allocate resources, allowing for competition and innovation. Capitalism encourages entrepreneurship and personal initiative, enabling individuals to pursue economic opportunities. However, it can also lead to income inequality and cycles of boom and bust. Many modern economies blend capitalism with elements of government regulation to address social welfare and provide public goods, resulting in mixed economies.