Which economic system is characterized by private ownership of resources?

The correct answer is characterized by private ownership of resources is capitalism. In a capitalist economic system, individuals and businesses own and control property and resources, allowing for the free market to dictate production, pricing, and distribution of goods and services based on supply and demand. This system encourages competition and innovation as businesses seek to maximize profit.

In contrast, socialism emphasizes collective or governmental ownership of resources, aiming for equal distribution and reduced income disparity among citizens. Communism takes this further by advocating for a classless system where all property is owned communally, eliminating private ownership entirely. Feudalism, an earlier economic system, was characterized by a rigid hierarchical structure where land was owned by nobles, and serfs worked the land without ownership, representing a very different form of resource management compared to capitalism.