In which economic system do private individuals own businesses and control production?

The economic system where private individuals own businesses and control production is known as capitalism. In capitalism, the means of production—such as factories, machinery, and land—are predominantly owned by private individuals or corporations rather than the state. This ownership allows individuals to make decisions about production, investments, and distribution, driven largely by the forces of supply and demand in the marketplace.

Under capitalism, individuals have the freedom to start their own businesses, operate them for profit, and compete with others in the economy. This fosters innovation and encourages efficiency as businesses strive to meet consumer needs and preferences. The competition inherent in capitalism also plays a vital role in regulating prices and improving the quality of goods and services.

In contrast, socialism and communism emphasize collective or state ownership and control over production, limiting individual ownership rights. Feudalism, on the other hand, is characterized by a rigid class structure and land ownership concentrated in the hands of a few nobles, rather than the widespread ownership typical in a capitalist system.