Identify the characteristics of a capitalist economic system. Characteristic(s) of Capitalism Property and goods are mainly privately owned. Press Space to open Only firms must increase competitiveness in a capitalist system. Press Space to open The production, pricing, and distribution of goods are determined by a free market. Press Space to open Efficiency is encouraged through technological innovation, expansion of markets, and reduction of production costs. Press Space to open Not Characteristic(s) of Capitalism