ECO-Market economic system, page no 98 #eco #Marketeconomicsystem
What market economic system:
A market economic system (or market economy) is a type of economic system where decisions regarding investment, production, and distribution are primarily driven by the interactions between supply and demand in free markets. In this system, prices of goods and services are determined by competition between businesses and consumer preferences, rather than by central planning or government control. Here are the three types of economic systems:
Market Economy: As described above, this system relies on private ownership and free-market mechanisms. Producers and consumers interact in the market to make decisions, and the government has little involvement.
Planned economy: In this system, the government makes all economic decisions, controlling what goods are produced, how they are produced, and who receives them. The government typically owns the means of production. Examples include the former Soviet Union and North Korea today.
Mixed economy: A mixed economy incorporates elements of both market and command economies. While private individuals and businesses control most industries, the government intervenes to regulate certain sectors and provide public goods and services. Many modern economies, including the United States and many European countries, are mixed economies.
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What are the advantages of a market economy?
What are some potential disadvantages of a market economy?
How are resources allocated in a planned economy?
What are the main goals of a planned economy?
What are the advantages of a planned economy?
What are some potential disadvantages of a planned economy?
How does a mixed economy combine elements of both market and planned economies?
What are the benefits of a mixed economy?
What are some challenges associated with a mixed economy?