In which type of economy are resources owned and controlled by individuals rather than the state?

In a free market economy, resources are primarily owned and controlled by individuals and private businesses rather than the state. This system operates on the principles of supply and demand, with minimal government intervention. Individuals have the freedom to produce, exchange, and own goods and services as they see fit. The allocation of resources is determined by market forces, leading to competition and innovation, which can drive economic growth.

In contrast, a planned economy is characterized by significant government control where the state makes all decisions regarding the production and distribution of goods and services. A mixed economy encompasses both private and government ownership, blending elements of free market and planned approaches, but still retains a level of state control. A socialist economy focuses on social ownership and democratic control of the means of production, which often limits individual control over resources. Overall, the defining feature of a free market economy is the emphasis on individual ownership and the freedom to engage in economic activities.