The correct answer to this open question is the following.
The type of economy that this statement describes is Capitalism.
In Capitalism, individuals own businesses and freely choose what to buy and sell in free markets with little government interference.
Just to make a comparison, in Socialism, the state is the owner of the means of production and they establish what to produce, when to produce it, at what price, and the salary of the workers.
That is not the case in Capitalism, where people can invest their money to make a profit and the harder they work, the better their results.
Capitalism operates in a free market, where there can be as many competitors as they can enter, and consumers have many elections to choose from.
