Which type of economic system best describes the United States?

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

Answer: (C)

Verified step by step guidance

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 intervention and market forces.
2. Analyze the characteristics of the United States economy, noting the presence of private property, consumer choice, and market-driven production alongside some government regulation and intervention.
3. Recognize that the United States does not have a purely market-driven economy because the government plays a role in regulation, social welfare, and public goods provision.
4. Identify that the United States economy fits best into the category of a mixed economy, which blends market mechanisms with government involvement.
5. Conclude that while the United States has strong market economy features, the presence of government intervention means it is best described as a mixed economy.