- Capitalist economy
- Market economy
The economic system of the United States is capitalism. In the American economy, most businesses are privately owned. Competition and profit motivate businesses. Businesses and consumers interact in the marketplace, where prices can be negotiated.
This is called a “market economy.” In a market economy, businesses decide what to produce, how much to produce, and what to charge. Consumers decide what, when, and where they will buy goods or services.
In a market economy, competition, supply, and demand influence the decisions of businesses and consumers.
** As you prepare for U.S. citizenship, Learn About the United States: Quick Civics Lessons will help you study for the civics and English portions of the naturalization interview. There are 100 civics (history and government) questions on the naturalization test. During your naturalization interview, you will be asked up to 10 questions from the list of 100 questions. You must answer correctly six (6) of the 10 questions to pass the civics test.