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 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.
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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.
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.
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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.
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.
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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?