Which type of economic system is primarily used in the United States?

• A. Command economy
• B. Market economy
• C. Traditional economy
• D. Mixed economy

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the definitions of the different economic systems: A command economy is one where the government makes all economic decisions; a traditional economy relies on customs and traditions; a market economy is driven by individual choices and market forces; and a mixed economy combines elements of both government control and market freedom.
2. Step 2: Identify the characteristics of the United States economy, such as private ownership of resources, consumer choice, and limited government intervention in most markets.
3. Step 3: Recognize that while the U.S. has some government regulations and social programs, the majority of economic decisions are made by individuals and businesses responding to market signals.
4. Step 4: Compare these characteristics to the definitions and conclude that the U.S. economy fits best with a mixed economy, which incorporates both market mechanisms and government involvement.
5. Step 5: Note that although the U.S. is often described as a market economy, it is technically a mixed economy because of the government's role in regulation and public services.