Which economic model is founded on the principle of private ownership and free market?

The correct choice is the market economy, which is based on the principles of private ownership and free market operations. In a market economy, individuals and businesses have the freedom to make their own economic decisions, such as what to produce, how much to charge, and where to allocate resources. Prices are determined by supply and demand dynamics, allowing for a responsive system where resources can be allocated efficiently based on consumer needs and preferences.

In this economic system, the role of government is generally limited, serving primarily to protect property rights, enforce contracts, and ensure that competition remains fair. This model encourages innovation and entrepreneurship, as individuals are incentivized to create and sell goods or services that they believe will be valuable to others.

Alternative economic models, such as traditional economies, focus on customs and traditions in production and consumption, and often do not prioritize individual ownership or market-driven decisions. Communist command economies are characterized by state ownership of resources and centralized planning, which negates the principles of private ownership and free market dynamics. A business-format franchise does not represent an economic model but instead describes a method of business operation that involves brand franchising.

Thus, the market economy is the only model in this list that embodies the essential characteristics of private ownership and free market principles.