Question

Explain in three or more complete sentences why the United States is considered a "Mixed Economy".

Answer 1

Due to the significant roles that both privately held companies and the government play, the United States is said to have a mixed economy. In fact, the relative contributions of the public and private sectors have been the subject of some of the longest-running discussions in American economic history.

Answer 2

The United States is considered a mixed economy because it combines elements of a market economy with those of a planned or command economy. In a market economy, decisions regarding what goods and services to produce, how much to produce, and at what price are made by individuals and businesses. In contrast, a command economy is one in which the government makes these decisions. The United States government plays a significant role in regulating various aspects of the economy, such as setting minimum wage laws and regulating business practices, while still allowing for private ownership and operation of businesses. This combination of market and government intervention is what makes the United States a mixed economy.