Question 11 of 100 · 2008 civics test
What is the economic system in the United States?
From the 100-question list, the version for applications filed before October 20, 2025.
On the 65/20 list: one of the 20 questions for applicants 65 or older with 20 years as permanent residents.
Accepted answers
- capitalist economy
- market economy
Any one of these is accepted, unless the question asks for more than one.
Why this is the answer
The United States has a capitalist, or market, economy, and either word answers the question. In practice that means most businesses are privately owned rather than run by the government, and that competition and profit are what drive them. It also means prices are not set from above: businesses decide what to produce and what to charge, consumers decide what to buy and where, and competition, supply and demand settle the rest. The two accepted answers describe the same system from different sides, one naming who owns the businesses and the other naming how prices are reached. Memory hook: private owners, open competition, prices set in the market.