Question

Which is true of the economic system in the United States?

a. There is almost no regulation in the free-market system.
b. Most businesses are owned by the government.
c. Government participates through enforcing laws and regulations.
d. Government plays a very limited, hands-off role.

Answer 1

In the United States, the government participates in the economy by enforcing laws and regulations, making it a modified free enterprise economy, which is also known as a mixed economy, rather than a purely hands-off system.

Step-by-step explanation:

The economic system in the United States does not have almost no regulation, nor are most businesses owned by the government. Instead, the correct statement is that the government participates through enforcing laws and regulations. This level of participation means the government plays roles as a regulator, protector, provider, consumer, and promoter of economic activity, which are crucial in maintaining a modified free enterprise economy. Essential regulations govern the protection of private property, enforcement of contracts, fraud prevention, and competition enforcement to ensure a fair market. Thus, the economic system in the U.S. is better described as a mixed economy rather than having a purely hands-off approach.