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IN A MARKET ECONOMY

There are basically 2 distinct economic systems, market economy and command economy. Both face the fundamental economic problem of deciding what to produce, for whom and how to produce as well as allocate, in a world of limited resources. Command economies are run and controlled by a centralized government while market economies are based on private enterprise. A market economy is decentralized, practical and flexible in the sense that everything rests upon the law of individual freedom. As a consumer, he has the freedom to choose among competing products and services. For a producer, it is the freedom to expand or begin any business. For a worker, to choose any job or career or organization that will satisfy his standards of living. Overall, the consumers play a big part on how a market economy works because they are the ones who determine what goods or services should be produced, and decide on whatever product or service they’re willing to spend based on their income. Every good i...

Posted by: Margaret Rowden

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