10 Facts about Market Economy

Post On: June 7, 2017
By: Agustina

Facts about Market Economy talk about the economic system, which emphasizes on the importance of demand and supply. Both will affect the people on how to decide the distribution, production and investment. The price of services and goods will be determined according to those factors. The allocation of goods and investments are used to define the market economy. It is very different from the planned economy. The latter one is organized by a state to create a plan related to the decision of production of goods and investment. Here are other interesting facts to notice about market economy?

Facts about Market Economy 1: free markets

Free market is a type of market economy. It does not purely exist because regulations are still applied by the governments.

Facts about Market Economy 2: the regulated market

The regulated market is different form free market. The former one is filled with various regulations.

Facts about Market Economy

Facts about Market Economy

Facts about Market Economy 3: the role of the government

Whether it is free market or regulated, it depends on the role of the government. How strong the governments affect the market will show you a different perspective in the economy.

Facts about Market Economy 4: mixed economies

The term mixed economy is also available where it combines different types of market economy. In some cases, most people use the term market economy to call the free market economy.

See Also: 10 Facts about Marxism

Facts about Market Economy 5: the people involved in market economy

The people involved in market economy include the autonomous state agencies, collectives and cooperatives.

Market Economy

Market Economy

Facts about Market Economy 6: capitalism

Have you ever heard about capitalism in market economy? Most of the means of productions are owned by the privates. The focus is to generate the profit as highest as possible.

Read Also: 10 Facts about Market Equilibrium

Facts about Market Economy 7: the role of market in capitalism

The markets will determine the prices, incomes, distribution and investments in capitalist system.

Facts about Market Economy 8: the presence of capitalism

If you are interested to know more about the practice of capitalism, you need to see the economy of the western world.

Socialism

Socialism

Facts about Market Economy 9: Laissez-faire

Laissez-faire is another term in market economy. It took place in the beginning and mid-19th century. The state only has the role to protect the property rights.

Related Article: 10 Facts about Life Insurance

Facts about Market Economy 10: Social market economy

Social market economy was applied in West Germany during the Second World War by Alfred Müller-Armack and Ludwig Erhard.

Do you have any opinion on facts about market economy?