Assignment Help on Market Economy

Definition of Market economy

In a market economy, economic decisions involving investment, production and distribution and the pricing of goods and services are determined solely by the corporative venture of country’s citizen and business in free price system. This is contrast to central planning economy in which governments are responsible for making all decisions that drive the aspects of the country’s economic activities.

How Market economy works?

For example, the United States is known to follow mixed economy (substantial market regulation, agricultural subsides, Medicare/Medicaid, extensive government-funded research and development, but the base of the economy is still market economy. There are different perspectives regarding government role in both guiding the market economy and addressing the inequalities the market produces.

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