Does the United States have a market economy or mercantilism economy?

Question

List 3 examples

Answer 1

market economy

A market economy or free market economy is an economic system in which the production and distribution of goods and services take place through the mechanism of free markets guided by a free price system. In a market economy, businesses and consumers decide of their own volition what they will purchase and produce, and in which decisions about the allocation of those resources are without government intervention. In theory this means that the producer gets to decide what to produce, how much to produce, what to charge customers for those goods, what to pay employees, etc., and not the government. These decisions in a market economy are influenced by the pressures of competition, supply and demand. This is often contrasted with a planned economy, in which a central government decides what will be produced and in what quantities. Market economy is also contrasted with mixed economy where there are market operations though the markets system is not entirely free but under some government control that is not extensive enough to constitute a planned economy. In the real world, there is no nation that has a pure market economy.

Mercantilism is an economic theory that the prosperity of a nation depends upon its capital, and that the volume of the world economy and international trade is unchangeable. Government economic policy based on these ideas is also sometimes called mercantilism, but is more properly known as the mercantile system. Some scholars conceive the mercantile system as a subset of, or synonymous with, the early stages of capitalism, while others consider mercantilism to be a distinct economic system.

Economic assets, or capital, are represented by bullion (gold, silver, and trade value) held by the state, which is best increased through a positive balance of trade with other nations (exports minus imports). Mercantilism suggests that the ruling government should advance these goals by playing a protectionist role in the economy, by encouraging exports and discouraging imports, especially through the use of tariffs.