ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The United States of America, one of the world’s largest economies, operates as a free market economy in consumer goods and business services.

Detailed explanation-2: -Capitalism is the economic system in the United States. It is a market economy. Capitalism means that people, not the government, own most businesses. In the U.S., businesses decide what to sell.

Detailed explanation-3: -The U.S. economy is essentially a free market economy-an economic market that is run by supply and demand-with some government regulation.

Detailed explanation-4: -Market economies are not controlled by a central authority (like a government) and are instead based on voluntary exchange. Market economies rely on the interplay between supply and demand to function. “Demand” refers to the amount of goods and services people need or want.

Detailed explanation-5: -The United States is said to have a mixed economy because privately owned businesses and government both play important roles. Indeed, some of the most enduring debates of American economic history focus on the relative roles of the public and private sectors.