Q:

What is the economic system in the United States?

A:

Quick Answer

The United States has a market-oriented, or mixed, economy, which means that businesses and private individuals make most of their own decisions. The state and federal government buy needed services and goods in the private marketplace.

Continue Reading

Full Answer

The overall essence of the economic structure of the United States is the interactions that take place between the public, private and international sector. Businesses have the right to choose the types of goods and services they provide, and they have the right to choose the cost at which to sell or produce those goods and services. The economic institutions in which economic actors buy and sell those goods are the markets. This is where most consumers purchase their food, clothing, and shelter.

The government plays a limited role in a market economy, but the government has a role in the overall national economy. The government supplies goods and services that the private market cannot provide, such as airports, highways and assistance for low-income citizens. The government also sets certain incentives for the production and consumption of certain goods. The government also sets guidelines for businesses to follow and establishes safety regulations to keep consumer products, working conditions and the environment protected and safe.

Learn more about Economics

Related Questions

Explore