Page(s) 309-310 11.1. Differentiate among the world economic systems of communism, socialism, and capitalism. Identify the characteristics of a capitalist economic system. Characteristic(s) of Capitalism Drag appropriate answer(s) here The production, pricing, and distribution of goods are determined by a free market. Efficiency is encouraged through technological innovation, expansion of markets, and reduction of production costs. Property and goods are mainly privately owned. Only firms must increase competitiveness in a capitalist system. Not Characteristic(s) of Capitalism Drag appropriate answer(s) here