An economy is a region’s or nation’s financial structure. It is the system that produces and distributes wealth.
The United States economy is a free enterprise system because anyone is free to start a business. You do not have to get permission from the government to start a business, although you will be expected to obey laws and regulations.
The free market system is also called capitalism, and is characterized by the following:
1 Individuals and companies may compete for their own economic gain
2 Private property ownership and wealth are permissible
3 Free market forces determine prices.