ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-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.

Detailed explanation-3: -The United States has more characteristics of a market economy than a command economy, where a government controls the market. In a market economy, the producer gets to decide what to produce, how much to produce, what to charge customers for those goods, and what to pay employees.

Detailed explanation-4: -In the 1820s and 1830s, a market revolution was transforming American business and global trade.

Detailed explanation-5: -The United States is considered the world’s premier free-market economy. Its economic output is greater than that of any other country that has a free market. 1 The U.S. free market depends on capitalism to thrive. The law of supply and demand sets prices and distributes goods and services.