What type of economic system does this country have, and what is the primary motivation for it?
Understand the Problem
The question is asking to identify the type of economic system and its primary motivation based on a description of a country's economy where the government controls most industries and aims to reduce inequality. We'll analyze the options provided to select the most appropriate answer.
Answer
Predominantly capitalist with elements of socialism.
The United States has a predominantly capitalist economic system with elements of socialism, primarily motivated by market freedom and limited government intervention.
Answer for screen readers
The United States has a predominantly capitalist economic system with elements of socialism, primarily motivated by market freedom and limited government intervention.
More Information
Mixing capitalist and socialist elements allows the United States to leverage the efficiency of markets while ensuring some level of social welfare and economic stability through government intervention.
Tips
A common mistake is to assume the US is purely capitalist without recognizing the significant role of government policies and social welfare systems.
Sources
- Pros and Cons of Capitalist vs. Socialist Economies - investopedia.com
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