Verified Answer :

MrDonovan

The correct answer is mixed market economy.

A market economy is one in which the economy is completely dictated by the consumers and producers. In this type of economy, the government does not play any type of role.

America does not have a pure market economy, as there is government regulation in our economy. For example, the federal government uses agencies like the Securities and Exchange Commission in order to monitor the stock market. Another example would be the Federal Deposit Insurance Corporation. The FDIC regulates financial institutions, like banks.

This is why the US is considered a mixed market economy, because it has elements of a command economy but primarily consists of ideas from the market economy structure.

The citizens of United States live and work in a mixed market economy.

Further Explanation

Mixed market economic system  

  • It is a combination of command economic system and market economy. The market in this case is less free of government with the exceptions of crucial areas such as defense and transport.
  • Mixed economic system incorporates capitalist and socialist policies. Individuals are permitted to carry out private and personal businesses while the state acts in certain crucial areas such as transport and defense.

Other Types of Economic system

Command economy  

  • This is a type of economy in which a centralized power controls the bigger part of the economic system.
  • This type of economy creates a healthy supply of resources and rewards to people at prices that are affordable. Critical utilities such as aviation, railroads, etc. are owned by the government.

Market Economic system  

  • This is a free market economy in which households and firms determine how resources are allocated and what goods are produced and who the buyers are.
  • There is a separation of the government and the market which prevents the government from becoming too powerful.

Traditional economic system  

  • It is a type of economic system where a surplus is rare since each member has a more specific role. They system is closely associated to land through farming.
  • These type of economic system or societies are socially satisfied. However, this type of economic system lack access to technology and medicine.

Keywords: Economic systems, mixed market economic systems

Learn more about

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  • Types of economic systems: https://brainly.com/question/8549073
  • Mixed economy system: https://brainly.com/question/8549073

Level; High school

Subject: History

Topic: Economic systems