Is a social and economic system that features private ownership of property and free markets

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Bradyn Bennett

16 March, 20:43

Is a social and economic system that features private ownership of property and free markets

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Corinne Duffy · Answer 1

A market economy has several aspects that characterize it. It is very rare that all of these aspects are realized completely.

1) In this type of economy the government doesn't intervene.

2) Resources are privately owned. Goods and services are given by the individuals.

3) There has to be freedom of choice to buy and sell whatever the people want. Freedom of enterprise to start any business you want.

4) Every entrepreneur sees for himself and looks to maximize their profit. They act on self interest.

5) Competition is very important for a market economy to work. In theory, when there's competition the market will regulate itself preventing price and power abuses and guaranteeing the best price for the costumer.