Why is the US economy classified as a mixed-market economy by economists?

 

  1. The government controls nearly all aspects of the stock market.
  2. Citizens have economic freedoms with some government regulation.
  3. Citizens have total economic freedom without government interference.
  4. The government protects citizens from foreign economic intrusion.
  5. The government requires a balance of foreign and domestic investments

 

Answer:- 2. Citizens have economic freedoms with some government regulation.

 

The U.S. has a mixed economy, showing characteristics of both capitalism and socialism. Such a mixed economy holds the free marketplace when it comes to capital use, but it likewise allows for government intervention for the public good. A system that has parts of both capitalism and socialism is called a mixed economy. In a mixed economy, private property is protected and certain economic freedom in the use of capital is permitted, but governments are also permitted to postpone commercial operations in order to achieve social goals.

 

Rendering to neoclassical philosophy, mixed economies are less well-organized than pure free marketplaces, but supporters of government interferences contend that the base settings required for efficiency in free marketplaces, such as equivalent information and balanced market participants, cannot be achieved in practical application

 

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