The American economic system is organized around a basically private enterpr

The American economic system is organized around a basically private enterprise. It’s(26)market-oriented economy in which consumers determine which shall be produced by spending their money for those goods and services. Private businessmen,(27)striving to make their profits, produce these goods and services in(28)competition with other businessmen, and the profit(29)motive, operating under competitive pressures, largely(30)determines how these goods and services are produced. Thus, in the American economic system it is the demand of individual consumers,(31)coupled with desire of businessmen to gain more profits and the desire of individuals to(32)maximize their incomes, that together determine what shall be produced and how resources are used to produce it.
    An important factor in a market-oriented economy is the mechanism by which consumer demands can be expressed and(33)responded to by producers. In the American economy, this mechanism is provided by a price system, a system in which prices rise and fall in response to relative demands of consumers. If the product is in short reply relative to the demand, the price will be a bit up and some consumers will be eliminated from the market. If, on the other hand, more supply of products results in reducing its cost, this will tend to(34)increase the supply offered by seller producers which in turn will lower the price and permit more consumers to buy the product. Thus, price is the regulating mechanism in the American economic system.
    The important factor in a private-oriented economy is that individuals are permitted to hire labor, gain control over natural resources, and produce goods and services for sale at a profit. In the American economy, the concept of(35)private property embraces not only the ownership of productive resources but also certain rights, including determining the price or making a free contract.