Which term is synonymous with free enterprise and capitalism in describing the U.S. economic system?

• A. Market System
• B. Socialism
• C. Free Market
• D. Command Economy

Answer: (C)

The term that is synonymous with free enterprise and capitalism in describing the U.S. economic system is 'Free Market.' In a free market system, economic decisions and the pricing of goods and services are guided by the interactions of citizens and businesses within the marketplace, rather than by central planning or government intervention.

This concept aligns closely with the principles of capitalism, where private individuals and businesses own and control the means of production and distribution. The free market allows supply and demand to dictate prices, reflecting consumer preferences and encouraging competition, which can result in innovation and better choices for consumers.

In contrast, terms like socialism and command economy refer to systems where the government plays a significant role in regulating or directing economic activity. A market system is a broader term that encompasses free markets but does not capture the full essence of a capitalist economy as directly as 'Free Market' does. Thus, 'Free Market' accurately encapsulates the fundamental characteristics of the U.S. economic system as a dynamic, competitive environment where economic freedom is valued.