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The economic system/ of the United States is/ capitalism./ In the American economy,/ most businesses are/ privately owned./ Competition/ and profit motivate/ businesses./ Businesses/ and consumers interact/ in the marketplace,/ where prices can be/ negotiated./ This is called/ a “market economy./

In a market economy,/ businesses decide/ what to produce,/ how much to produce,/ and what to charge./ Consumers decide/ what,/ when,/ and where they will buy/ goods/ or services./ In a market economy,/ competition,/ supply,/ and demand influence/ the decisions/ of businesses and consumers./

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What is the economic system in the United States?
What motivates American businesses?
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* The reading text above is partially referred by USCIS Quick Civics Lessons “Learn About the United States” and only used for educational purposes.

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