ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Capitalism is the economic system in the United States. It is a market economy. Capitalism means that people, not the government, own most businesses.

Detailed explanation-2: -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.

Detailed explanation-3: -The process of opening world markets and expanding trade, initiated in the United States in 1934 and consistently pursued since the end of the Second World War, has played an important role in the development of American prosperity.

Detailed explanation-4: -The US economy is considered a mixed economy-has features of capitalism, government ownership, and government regulation of the economy.

Detailed explanation-5: -Market economies are tied to capitalism, an economic system where private entities or people own the means of production. Capitalism needs the forces of supply and demand in the market economy to distribute goods and services and set prices.