No economic system has all the answers. The traditional economy offers little hope for growth or change. The centrally planned economy is slow-moving and offers consumers few choices or freedom. Market economies have many advantages but also have their limitations. For example, markets do not provide answers for some of society’s needs, such as the need for defense, education, and fast transportation routes. Governments provide answers to these needs by maintaining armed forces, schools, and roads and bridges. Governments also enforce property rights and rules against unfair competition.

     No country has an economy that is purely free market or purely controlled by the government. All are mixed economies, combining free markets with government intervention, or involvement. There is a continuum—a range with no clear divisions—of economic systems. At one extreme, the North Korean economy is almost completely controlled by the government. China has a centrally planned economy but is in transition, a period of change, moving toward a market system. Hong Kong is governed by China, but has a separate economic system based on its years as a colony of Great Britain. This system is dominated by free markets.

     Compared to most other nations, the United States has an economy with little government involvement and a great deal of economic freedom. Such a system is called free enterprise.