What type of economic system does the United States operate under?

The United States operates under a capitalist economy, which is characterized by private ownership of the means of production and the pursuit of profit. In this system, individuals and businesses make economic decisions based on supply and demand, competition, and market-driven forces. Capitalism encourages entrepreneurship and innovation, allowing individuals to create and grow businesses with relatively minimal government interference.

In a capitalist economy, the market determines the prices of goods and services, and resources are allocated through voluntary exchange. This is evident in the wide range of choices available to consumers and the dynamic nature of the job market, where workers have the freedom to seek employment opportunities that best meet their skills and interests.

The other answer choices represent different economic systems that operate under distinct principles. For example, socialism emphasizes collective or governmental ownership of production resources, while communism advocates for a classless society with communal ownership. Mercantilism, an older economic theory, focused on national strength through a favorable balance of trade. Understanding these differences highlights why capitalism is the correct descriptor for the U.S. economic system.