Which economic system is defined by a free market and private ownership?
a. socialism
b. communism
c. capitalism
d. mercantilism

This is capitalism: the usual definitions of capitalism that I read actually always include the phrases"free market" and "private ownership". (however, in practice very few countries are capitalist, most have a mixed economy with for example health care being partially controlled by the government.

Both countries had to aprove annexation.