<P> There are several basic questions that must be answered in order for an economy to run satisfactorily . The scarcity problem, for example, requires answers to basic questions, such as: what to produce, how to produce it, and who gets what is produced . An economic system is a way of answering these basic questions, and different economic systems answer them differently . Many different objectives may be seen as desirable for an economy, like efficiency, growth, liberty, and equality . </P> <P> Economic systems are commonly segmented by their property rights regime for the means of production and by their dominant resource allocation mechanism . Economies that combine private ownership with market allocation are called "market capitalism", and economies that combine private ownership with economic planning are labelled "command capitalism" or dirigisme . Likewise, systems that mix public or cooperative ownership of the means of production with economic planning are called "socialist planned economies", and systems that combine public or cooperative ownership with markets are called "market socialism". Some perspectives build upon this basic nomenclature to take other variables into account, such as class processes within an economy . This leads some economists to categorize, for example, the Soviet Union's economy as state capitalism based on the analysis that the working class was exploited by the party leadership . Instead of looking at nominal ownership, this perspective takes into account the organizational form within economic enterprises . </P> <P> In a capitalist economic system, production is carried out for private profit, and decisions regarding investment and allocation of factor inputs are determined by business owners in factor markets . The means of production are primarily owned by private enterprises, and decisions regarding production and investment are determined by private owners in capital markets . Capitalist systems range from laissez - faire, with minimal government regulation and state enterprise, to regulated and social market systems, with the aims of ameliorating market failures (see economic intervention) or supplementing the private marketplace with social policies to promote equal opportunities (see welfare state), respectively . </P> <P> In socialist economic systems (socialism), production for use is carried out; decisions regarding the use of the means of production are adjusted to satisfy economic demand; investment is determined through economic planning procedures . There is a wide range of proposed planning procedures and ownership structures for socialist systems, with the common feature among them being the social ownership of the means of production . This might take the form of public ownership by all of the society, or ownership cooperatively by their employees . A socialist economic system that features social ownership but is based on the process of capital accumulation and utilization of capital markets for the allocation of capital goods between socially - owned enterprises falls under the subcategory of market socialism . </P>

Which economic system is based on private ownership of land and resources