Florida Civics Literacy (FCLE) Practice Exam

The economic system primarily used in the United States is capitalism. Capitalism is characterized by private ownership of the means of production, where individuals and businesses make decisions regarding the production and distribution of goods and services based on market demands. It promotes competition, encourages innovation, and allows for a free market where prices are determined by supply and demand.

In the context of the United States, capitalism has led to significant economic growth and development, fostering an environment where entrepreneurs can start businesses, consumers have choices, and wealth can be generated and distributed among the populace. The system is underpinned by the principles of personal freedom, limited government intervention in the economy, and the protection of property rights, which are essential for encouraging investment and economic activity.

Comparatively, the other economic systems listed, like socialism and communism, involve varying degrees of government control over the economy and ownership of resources, differing fundamentally from the capitalist model. Feudalism, an outdated economic system based on land ownership and serfdom, does not apply to the current context of the United States.