THE UNITED STATES ECONOMY

The United States ranks first in the world in the total value of its economic production. The United States economy is based largely on a free enterprise system. In such a system, individuals and companies are free to make their own economic decisions. Even though the U.S. economy is based on free enterprise, the government has placed regulations on economic practices. If has passed antitrust laws, which are designed to keep one company or a few firms from controlling entire industries. Such control, called a monopoly, does away with competition and enables controlling companies to charge high prices and reduce the quality of goods.

A variety of natural resources provide the raw materials that support the economy of the United States. The country has large deposits of coal, iron ore, natural gas, and petroleum, which are vital to the country's industrial strength. Its many other important minerals include copper, gold, lead, phosphates, potash, silver, sulfur, and Zink. To meet its needs, however, the United States must import additional amounts of iron ore, petroleum, and other minerals.

Manufacturing is the single most important economic activity in the United States. It accounts for 19 per cent of the gross national product (GNP) and employs 17 per cent of the workers. Factories in the United States turn out a tremendous variety of producer goods, such as sheet metal and printing presses; and consumer goods, such as cars, clothing, and TV sets. The leading categories of U.S. manufactured products are, in order of value, transportation equipment, food products, chemicals, non electrical machinery, electrical machinery and equipment, printed materials, scientific instruments, and paper products.

Beginning in the mid- 1900's industries in the United States turned increasingly to automation - the use of machines that operate with little human assistance. Today, computers operate machines, and perform many other important functions in American industries.

The United States leads the world in agriculture, although it employs only 3 per cent of the nation's workers. Beef cattle rank as the most valuable product of American farms. Other leading farm products include milk, corn, soybeans, hogs, wheat, chickens and eggs, and cotton. U.S farms also produce large amounts of hay, tobacco, potatoes, turkeys, oranges, tomatoes, grapes, and apples. The use of modern farm machinery and agricultural methods has helped to make U.S. farms the most efficient in the world.

Various kinds of trade play major roles in the American economy. Important U.S. exports include machinery, such as computers, engines, telephone equipment, and tractors and harvesters; transportation equipment, including aircraft and automobiles; chemicals, such as chemical compounds, medicines, and plastics; agricultural products, including corn, soybeans, and wheat; and coal. The leading U.S. imports are: machinery, including radios, stereo equipment, television sets, and optical equipment; transportation equipment, especially automobiles and trucks; minerals, especially petroleum; manufactured goods, including clothing and shoes; iron and steel and other metals; paper, and textiles; and food products, including coffee and seafood.

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