• The market economic system explains how a market is organised and how it runs

• The market system is controlled by the market agents, these market agents control the economic system ( household and firms )

3 Types Of Market Economics Systems

• Market Economy

• Planned Economy

• Mixed Economy

Market Economy

• This economic system relies on the market forces of demand and supply (in the private sector) to allocate resources with minimal government intervention. Hong Kong is the world’s freest market economy. Singapore and New Zealand are also considered market economies.

Mixed Economy

• This economic system relies on the government (in the public sector) allocating resources. It is often associated with a communist political system that strives for social equality. Examples are North Korea, Venezuela and Cuba.

Planned Economy

• This economic system is a combination of the planned and market economic system, with some resources being owned and controlled by private individuals and firms, while others are owned and controlled by the government in the public sector. Examples are Japan, Italy and Spain.