The economic system based on private ownership and free markets is capitalism. In a capitalist economy, individuals and businesses have the freedom to own and operate private property, as well as make decisions regarding production, investment, and the distribution of goods and services. Market forces, such as supply and demand, largely determine prices and resource allocation. Capitalism fosters competition and innovation, often leading to economic growth and an increase in living standards. However, critiques of capitalism discuss issues like income inequality, monopolies, and environmental degradation, prompting debates on the balance between free markets and regulation to ensure fairness and sustainability.