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

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

Answer: (A)

Verified step by step guidance

1. Understand the definition of each economic system: A market economy is one where economic decisions and pricing are guided by the interactions of citizens and businesses with minimal government intervention.
2. Recognize that a command economy is characterized by central planning where the government controls production and distribution decisions.
3. Identify that a traditional economy relies on customs, history, and time-honored beliefs to make economic decisions, often seen in rural or less developed areas.
4. Know that a mixed economy combines elements of market and command economies, with varying degrees of government intervention.
5. Recall that the United States primarily operates under a market economy, where private individuals and businesses make most economic decisions, although it has some government regulations, making it a mixed economy with a strong market orientation.