Economics -- Week 7, Part A
The economic system of the United States leans toward the market model. The fact that there is limited government involvement and regulation, however, means that the U.S. economy is not a pure market model. Because the economic system of the United States is based on the freedom to make choices, it is often referred to as a free-enterprise system. Economists use the circular flow model to illustrate how the economic resources, goods and services, and payments are exchanged in the U.S. free-enterprise system.
VIDEO OBJECTIVES
- Describe the main features of free enterprise in the United States
- Name the two markets of the circular flow model
- Explain how the circular flow model reflects exchange
By Christian Carpenter
