Praxis II Citizenship

Answer: A - The United States has a mixed economy. While many aspects of the U.S. economy are rooted in a capitalist free market structure, it is not exclusively run by private interests. The government does own some factors of production, which is the common attribute of socialist or planned economies. More importantly, while the market determines the nation’s economic course the majority of the time, if some disruption to economic equilibrium occurs, such as a natural disaster causing the depletion of certain agricultural products, the government can and will intervene to help stabilize the economy and quell uncertainty.