The economic system of the United States is principally one of private ownership. In this system, consumers, producers and government make economic decisions on a daily basis, mainly through the price system. The dynamic interaction of these three groups makes the economic function. The market’s primary force, however, is the interaction of producers and consumers; hence the “market economy” designation.
As a rule, consumers look for the best values for what they spend while producers seek the best price and profit for what they have to sell. Government, at the federal, state, and local level, seeks to promote public security, assure reasonable competition, and provide a range of services believed to be better performed by public rather than private enterprises.
Generally, there are three kinds of enterprises: single-owner operated businesses, partnerships and corporations. The first two are important, but it is the latter structure that best permits the amassing of large sums of money by combining the investments of many people who, as stockholders, can buy and sell their shares of the business at any time on the open market. Corporations make large-scale enterprises possible.
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