General Educational Development (GED) Civics Practice Exam 2025 - Free GED Civics Practice Questions and Study Guide

The economic system in the United States is best described as a capitalist economy, also referred to as a market economy. In this system, the means of production and distribution are primarily owned and operated by private individuals or corporations, rather than by the government. The principles of free market competition and supply and demand play a significant role in determining prices and the allocation of resources.

Individuals have the freedom to pursue their economic interests, which can lead to innovation and growth. This system encourages entrepreneurship and allows for private ownership, thereby enabling individuals to earn profits from their economic activities.

While there is some government involvement in regulating certain aspects of the economy, such as antitrust laws and social welfare programs, the overarching framework is that of a capitalist model, characterized by individual economic freedom and market-driven practices.