Remember that free market economies would theoretically have no government
intervention or regulation of the economy. This does not mean that no government
exists. It simply means that the government would allow the economy to function on its
own without oversight or regulations by the government.
1. As you can imagine, this can create problems. In the space below, describe a few
problems this type of economy would create.

Due to issues such as these, most market-leaning or market-based economies are not
pure free market economies. Rather, over time the government has created rules and
regulations to prevent harm to the consumer. Because of these regulations, countries
like the US are considered mixed economies, though they have many characteristics of
free market economies such as private property and competitive markets.
2. What makes the US economy mixed? Name a few regulatory agencies or laws
you've heard of.
3. Based purely on your own experience, is the US economy well regulated? Would
you add more regulations or get rid of any? Explain.