ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The economic system of the United States is principally one of private ownership. This system, often referred to as a “free enterprise system, ” can be contrasted with a socialist economic system, which depends heavily on government planning and public ownership of the means of production.

Detailed explanation-2: -The U.S. has a mixed economy, exhibiting characteristics of both capitalism and socialism. Such a mixed economy embraces the free market when it comes to capital use, but it also allows for government intervention for the public good.

Detailed explanation-3: -As the term free enterprise suggests, the essence of our nation’s economic system is freedom-the ability of individuals to act in their own best interest in free markets.

Detailed explanation-4: -As an economic system, private enterprise is characterized by competition, open markets, private ownership, and private initiative. Producers take production initiative on the basis of price and profit-and-loss signals essentially given by consumers.