MARKET ECONOMY

How does a market economy answer the 3 economic questions?

the economic questions are answerd by individuals buying and selling of goods and services in the market place.

They offer the products and services consumers want and are rewarded with profits.

Individuals buying and selling of goods and services through marketplace

Characteristics: Free price system, Laissez Faire- when the goverment has no control over big businesses.

Resources are owned and controlled by people of the country

Pros/Cons:

Pro:

Doesn’t tell businesses what to produce. They act on their own self interests.

72% favor a free market economy <--- this isnt a pro.......................................................

Con: less regulation of products

Produces class division

Examples: Germany, Canada, Netherlands,

Market=place where goods and services arwe exchanged (ex:internet or supermarket)