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

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

Answer: (D)

Verified step by step guidance

1. Understand the definitions of the different economic systems: a Command economy is where the government controls production and distribution; a Traditional economy relies on customs and traditions; a Market economy is driven by individual choices and market forces; a Mixed economy combines elements of both government intervention and market forces.
2. Recognize that the United States primarily operates with minimal government control over most economic activities, allowing supply and demand to determine prices and production, which is characteristic of a Market economy.
3. Note that while the U.S. has some government regulations and social programs, these do not dominate the economic system, so it is not a pure Command or Traditional economy.
4. Identify that a Mixed economy includes significant government intervention alongside market mechanisms, but the U.S. leans more towards a Market economy with limited government role compared to other countries with Mixed economies.
5. Conclude that the best classification for the U.S. economic system is a Market economy, as it primarily relies on private enterprise and market forces to allocate resources.