An economic system in which resources are privately owned and allocated by the market is called

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In a market capitalist system, resources such as land, labor, and capital are owned by individuals or private companies rather than the state. Decisions about what to produce, how much to produce, and at what price are made by individual buyers and sellers interacting in the market. This contrasts with centrally-planned systems where the government makes these decisions. Market socialism may involve some state ownership and control of the economy, but still relies on market forces to allocate resources. The other options, centrally-planned capitalism and centrally-planned socialism, involve state ownership and control of resources and production. A tradition-based economy is one in which decisions are made based on customs and traditions that have been passed down through generations.

An Economic System in Which Resources Are Privately Owned and Allocated