The economic system based on private ownership is capitalism. In a capitalist system, individuals and businesses own the means of production, distribution, and exchange of goods and services. This system encourages competition and efficiency, allowing for market-driven decisions determined by supply and demand. Capitalism typically promotes innovation and entrepreneurship as individuals seek to maximize their profits. However, it can lead to income inequality and require government regulations to address issues such as monopolies and worker rights. Overall, capitalism is characterized by its emphasis on personal freedom in economic activities.