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Q. 12 / 128American Government → Principles of Democracy

What is the economic system of the United States?

OFFICIAL ANSWER
  • Capitalism
  • Free market economy
Hear the answer · spoken at official pace0:03

Context

American capitalism emerged from Enlightenment ideas about individual liberty and private property rights, principles embedded in the Constitution. Unlike command economies where the government controls production and pricing, the U.S. system relies on supply, demand, and competition to allocate resources. The government does regulate certain industries and provide some public services, creating what economists call a mixed economy, but private enterprise remains the foundation.

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