Civil Service Practice Exam 2025 – Comprehensive All-in-One Guide to Success!

The economic system in the United States is characterized primarily as a capitalist or market economy. This system emphasizes private ownership of property and the means of production, where individuals and businesses operate for profit in a competitive environment. Market forces, such as supply and demand, play a significant role in determining prices and the distribution of goods and services.

In this framework, the government has a limited role in economic decision-making, usually intervening to regulate or provide certain services, ensuring fair competition and protecting consumers. The principles of entrepreneurship and innovation are also crucial, as they drive economic growth and job creation within the economy.

While the U.S. also exhibits features of a mixed economy, where aspects of both capitalism and some government intervention coexist, the fundamental characteristic remains its capitalist orientation. This distinguishes it from socialist or communist systems, where the government typically owns or controls significant sectors of the economy.