DEFINE: market economy.....thanks..xx?

Question

what can i write about this and how is it related to the threat to the rivers of civilisation...

please help..10 points best answer...xx

Answer 1

A pure market economy is one where everything is determined by the market and there is no government intervention. What is produced in the market is determined by supply and demand.

Answer 2

A market economy is what naturally develops in a truly free world. Free as in free from monetary and trade policies. That means no regulation at all, no tariffs, no paper currency, no punitive taxes, etc.

The US is not a market economy, nor free.

Answer 3

An economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's citizens and businesses and there is little government intervention or central planning. This is the opposite of a centrally planned economy, in which government decisions drive most aspects of a country's economic activity.

Answer 4

Well I'm afraid I'm not sure what you mean when you say 'rivers of civilisation' but I'll give you a definition of market economy. Basically it is when firms (businesses if you prefer) determine how many goods and services are to be produced and how much is to be charged for them in markets. This is due to the forces of demand and supply. So to take a basic example McDonalds determine how many hamburgers they will make and how much they will charge. This happens with all the private owned firms across the economy.

      A market economy contrasts to a planned economy where the government determines how much of a good is to be produced and how much is to be charged for it. This happens in Cuba and the former USSR. So in a planned economy they will set a quota for how many jeans are to be produced in a year, then they set the price for what they will be sold at. This happens economy wide. In the USSR they did this using things called Gosplans.

Hope that helps.