The United States has a capitalist economy. Capitalism is an economic system in which businessmen privately own the means of production, which is referred to as capital. Free market competition dictates prices and production levels. Under the capitalist system, prices and salaries are determined by supply and demand. The government’s role in this system is to protect the rights of financial motivators of the economy.Continue Reading
In capitalism, the most successful business people are the ones who create the greatest amount of profit for the least amount of expense. Competition forces companies to keep prices low in order to attract and keep consumers.
Capitalism began as a result of the industrial revolution of the 18th century. Since the disintegration of the Soviet Union, the growth of Japan and other Asian countries as serious competitors to the U.S. economy and an increase in the level of globalization, capitalism has become the dominant economic system worldwide.
The term "capitalist" was originated by social theorist Karl Marx to describe a system wherein a small group of people control large amounts of money and make the most important economic decisions. Marx believed that a capitalist system concentrates power in the hands of wealthy people, who want mainly to maximize their profits.Learn more about Economics
A diversified economy is an economy that has a number of different revenue streams and provides nations with the ability for sustainable growth because there is not a reliance on one particular type of revenue. This diversification provides nations with the security and reliability that they need so that if one economic revenue stream should fail, the nation knows that they have several other options for revenue.Full Answer >
An agrarian economy is a type of economy that relies primarily on agricultural industry including livestock farming or crop production. It is a form of economy whose major factor of production is the agricultural land. Prosperity of agrarian economy is also influenced by other factors such adequate rainfall, suitable climate and inputs like fertilizers.Full Answer >
Afghanistan has a primitive type of economy dependent on agriculture, the illegal opium trade and foreign aid. Though its abundance of natural resources such as natural gas, petroleum and many types of minerals has the potential to make it a wealthy nation, due to decades of war, little infrastructure exists with which to exploit this abundance.Full Answer >
The top export for the United States in 2013 was material goods, including machines, engines and electrical equipment. In total, the U.S. exported $2,272 trillion in goods and services.Full Answer >