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Aryan · 2024-05-10T09:00:22.881Z

Lesson 2.9 Property Ownership • Individuals have the right to purchase the factors of production Freedom Of Choice • Individuals are free to start their own business • Firms are free to decide what they are going to produce, how, & for whom • Workers are free to decide who they are going to work for • Consumers decided what goods/services best meet their wants/needs Self Interest • Entrepreneurs maximize profits • Workers maximise wages • Consumers maximise their well-being/satisfaction Limited Government Intervention • A pure market economy has no government intervention • Most free market economies have a low level of intervention, usually in the form of taxation, provision of defense, healthcare & education Price Mechanism • Changes in prices allocate scarce resources • Rising prices indicate a shortage of resources & falling prices indicate a surplus of resources Advantages & Disadvantages of a Market System Advantages • Profit incentive motivates people to work or develop entrepreneurial ideas • Greater variety of goods/services • Competition leads to better quality of goods/services • Competition leads to lower prices of goods/services • Competition encourages innovation and product development • Profits, income and wealth are unlimited resulting in better standards of living • More efficient use of scarce resources Disadvantages • Wealth gets concentrated in the hands of the few as they are able to keep buying up the scarce factors of production • This increases inequality such that the gap between the rich and the poor continues to grow • Sometimes product quality falls as firms lower quality standards in order to increase profits • Workers get exploited • Resource depletion and environmental degradation are often ignored • Monopolies develop as firms increase market power through mergers and acquisitions • This leads to exploitation of consumers and supply chains

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Aryan

May 10

Edited: May 10

Characteristics of a Market System

in Aryan

Lesson 2.9

Property Ownership

Individuals have the right to purchase the factors of production

Freedom Of Choice

Individuals are free to start their own business
- Firms are free to decide what they are going to produce, how, & for whom
- Workers are free to decide who they are going to work for
- Consumers decided what goods/services best meet their wants/needs

Self Interest

Limited Government Intervention

Price Mechanism

Changes in prices allocate scarce resources
Rising prices indicate a shortage of resources & falling prices indicate a surplus of resources

Advantages & Disadvantages of a Market System

Advantages

Profit incentive motivates people to work or develop entrepreneurial ideas
Greater variety of goods/services
Competition leads to better quality of goods/services
Competition leads to lower prices of goods/services
Competition encourages innovation and product development
Profits, income and wealth are unlimited resulting in better standards of living
More efficient use of scarce resources

Disadvantages

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01	Updates as per my time table, reply for the comments for you	*	*	*	*	*
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03	Answered all questions on my posts till the previous date.	*	*	*	*	*
04	English daily woks	*	*	*	*	*
05	Reduce device time in to half an hour in a day (Phone calls, TV, youtube, sports videos, whatsapp, insta, FB etc). Phone should be keep with parents / grandparents		*	*	*	*
06	Involving in cleaning and mopping at Uyir in the morning Or Keep Uyir space clean and beautiful throughout the day.		*	*	*	*
07	Follow health and hygiene rules		*	*	*	*
08	Complete 3 personal responsibilities mentioned by parents			*	*	*
09	Support other children or help in their learning at least 20 minutes in a day			*	*	*
10	Find time to do more research on your passionate area. ( need extra post other than the subject post)				*	*
11	70 % and above marks attain any exam.					*