Question

While the United States' economic system is rooted in laissez-faire capitalism, its government collects taxes and provides services (such as national defense and education), making the United States a ___________________________.

Answer 1

The correct answer is: Mixed economy.

Step-by-step explanation:

To begin with, the term of mixed economy is used to describe an economic system whose characteristics are elements from both market economies and planned economies. Moreover, this system includes a combination of the elements of the other two, such as free market with state interventionism or private enterprise with public enterprise as well too. In addition, this type of economy focuses in the predominance of private ownership of the means of production with profit-seeking enterprise and the accumulation of capital as its fundamental driving force.