UNDERSTANDING

Economic S y s t e m s

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United States

Part 4:

Economic

System

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Capitalism Economic system in which a country's trade and industry are

controlled by private owners for profit, rather than by the government

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While not it is not a total capitalistic economy, the

United States economy is based in capitalism.

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Four

Of the United States Economic System Principals

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#1

Individuals can own, use, or dispose of things of value.

Private Property

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#2

Individuals can make decisions independently and must accept

consequences of those decisions.

Freedom of Choice

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#3

The money left from sales after all of the costs of operating a

business have been paid.

Revenue – Expenses = Profit

Profit

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#4

The rivalry among businesses to sell their goods and services to

consumers and customers.

Competition

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Buy and use goods and services. The Consumers’ role in a market

economy is to decide what to buy, where to buy, from whom to buy,

and what price they are willing to pay.

Consumers

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Individuals and organizations that determine what products and

services will be available for sale. The role of producers is to

determine what products and services will be available, what needs

and wants they will satisfy, and the prices they want to receive.

Producers