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

• A. Traditional economy
• B. Command economy
• C. Mixed economy with a strong emphasis on central planning
• D. Market economy

Answer: (D)

Verified step by step guidance

1. Understand the main types of economic systems: Traditional, Command, Market, and Mixed economies. Each system differs in how resources are allocated and decisions are made.
2. Recognize that a Traditional economy relies on customs and traditions to make economic decisions, often seen in less developed or rural societies.
3. Know that a Command economy is characterized by central planning where the government controls production and distribution of goods and services.
4. Identify that a Market economy is driven by individual choices and voluntary exchange, with minimal government intervention, where supply and demand determine prices.
5. Realize that the United States primarily operates a Mixed economy, which combines elements of a Market economy with some government regulation, but it is not a Command economy or purely Traditional economy.