The United States economy is a free enterprise system. It is also referred to as a "free trade system" because it is based on

The United States economy is a free enterprise system. It is also referred to as a "free trade system" because it is based on **voluntary exchanges and the freedom of individuals and businesses to engage in economic activities with minimal government interference**. In a free enterprise or free trade system: 1. **Private Ownership**: Individuals and businesses have the right to own and control property and resources. 2. **Voluntary Exchange**: Transactions between buyers and sellers are made freely without coercion, allowing prices to be determined by supply and demand. 3. **Competition**: Multiple businesses compete to provide goods and services, which can lead to innovation and better quality for consumers. 4. **Limited Government Intervention**: The role of the government is generally restricted to enforcing laws and regulations that ensure fair competition and protect property rights, rather than controlling or directing economic activities. These principles foster an environment where trade can occur freely, promoting economic growth, efficiency, and the ability for individuals to pursue their own economic interests.