One basic economic system is market economy. Describe this system in a paragraph of 50 words.?

Question

One basic economic system is market economy. Describe this system in a paragraph of 50 words.

Answer 1

The market economy is the organization of social interactions towards a productive end that is not regulated by an outside group of violent individuals. That is, the market economy is the natural order that would exist without governmental interaction or interaction from an outside body using force to manipulate the end result of the trade. For instance, lets say I wanted to by a tomato from you, we have created or are in a market economy. It is no longer a market economy and becomes a mixed economy when the government bans the sale of tomatoes. You can look at a market economy as one end of a spectrum and as government intervenes more it gets closer to the other end which is communism/socialism.

Answer 2

I'll give you some main points, but you write the paragraph.  Deal?

-factors of production are privately owned

-minimal government interference

-competition

-private property is a necessary condition

-consumers and firms make economic decisions, based on prices, which are determined via supply and demand

Answer 3

In a market economy production and consumption are decided by supply and demand.  The producer and consumer must agree on a price that the producer is willing to sell the goods and the consumer is willing and able to purchase them.  If supply or demand changes, the market price will change.

51 words...