2008 civics test · Question 11 · Principles of American Democracy
What is the economic system in the United States?
One of the 20 questions for the 65/20 special consideration
Any one of these answers is accepted
- capitalist economy
- market economy
What this means
The United States has a capitalist economy, also called a market economy or a free market economy.
In this system, businesses and property are mostly owned by private individuals and companies rather than by the government. Prices are set largely by supply and demand, by what people are willing to buy and sell things for.
In practice the U.S. system is a mixed economy: the government still regulates industries, collects taxes, and runs programs like Social Security. But for this question the officer is listening for one short phrase.
Answer with either “capitalism” or “market economy.” Two words is enough.
Why this is on the test
This question has two accepted wordings and applicants often overthink it. A short two-word answer is all the officer is listening for.
How this question is asked
On the 2008 civics test, the officer asks up to 10 of the 100 questions out loud and you pass by answering 6 correctly. You answer in your own words. There is no multiple choice and nothing to write down for the civics portion.
Related questions
More from Principles of American Democracy.
- 1 What is the supreme law of the land?
- 2 What does the Constitution do?
- 3 The idea of self-government is in the first three words of the Constitution. What are these words?
- 4 What is an amendment?
- 5 What do we call the first ten amendments to the Constitution?
- 6 What is one right or freedom from the First Amendment? ★ 65/20 question