Final answer:
Capitalism is the economic system that allows entrepreneurs and private businesses the freedom to use resources and produce goods and services of their choice, characterized by economic freedom, private property rights, competition, and voluntary exchange.
Step-by-step explanation:
The economic system that ensures that entrepreneurs and private businesses are free to obtain and use economic resources to produce their choice of goods and services is Capitalism. Capitalism, also known as a free market system or free enterprise system, is characterized by several key conditions.
First, it must have economic freedom, allowing businesses and consumers to make their own economic choices. Additionally, there must be competition in the marketplace, which keeps prices down and improves quality.
Another essential feature is the presence of voluntary exchange, where both sellers and buyers agree on transactions willingly. Most importantly, capitalism is defined by private property rights, where individuals and firms have ownership of resources and the products they create.
In contrast with socialism and command economies, where the government has greater control over economic decisions, capitalism emphasizes minimal government intervention, promoting entrepreneurial activity and allowing the market to determine the distribution of resources and goods based on demand and competition.