Final answer:
The characteristics mentioned: Private property, Specialization, Voluntary Exchange, The price system, Market competition, and Entrepreneurship, are key components of Capitalism, which is a type of free market system promoting economic freedom and efficiency.
Step-by-step explanation:
The terms Private property, Specialization, Voluntary Exchange, The price system, Market competition, and Entrepreneurship are all characteristics of a Capitalism or a free market system.
In such a system, economic freedom allows individuals to make decisions within the market, leading to a private enterprise system where they own and control the means of production. Specialization refers to individuals or firms focusing on tasks they are well-suited for, which enhances efficiency and productivity.
Voluntary exchange is the process where buyers and sellers freely engage in transactions, believing that the exchange is beneficial to both parties. The price system is an important component that emerges from the demand and supply within the market, determining the value of goods and services.
Market competition is the rivalry among businesses to attract customers, which usually results in better quality products and services. Lastly, entrepreneurship is the initiative to start new businesses or come up with new ideas, providing the dynamism in the system. Together, these elements enable an economy to adapt, grow and innovate.
Government's role in this system tends to be limited, providing just enough regulation to maintain a stable economy without infringing on economic freedoms. However, when voluntary exchanges affect a third party, known as externalities, some governance may become necessary to correct market failures.