Market Economy
A market economy is an economic system which relies on the market to dictate what, how, how much and for who goods and services are produced in the economy. The role of the government in this system is to ensure the safety of the people and the laws are in a place which facilitate the market system. Market economies are ones that are totally run by the market, meaning that the sellers and consumers decide what the prices are and what is sold based upon what they are buying and what they choose to sell. As was said earlier, the government has very little involvement in this type of economy. It is a common economy across countries whose governments don't wish to involve themselves directly in general business for varying reasons. These types of economies are commonly adopted across the world for varying reasons such as they have a large country and it would be very hard to control all of the country so that it has an even amount of funding for businesses, schools and health care.
A market economy is an economic system which relies on the market to dictate what, how, how much and for who goods and services are produced in the economy. The role of the government in this system is to ensure the safety of the people and the laws are in a place which facilitate the market system. Market economies are ones that are totally run by the market, meaning that the sellers and consumers decide what the prices are and what is sold based upon what they are buying and what they choose to sell. As was said earlier, the government has very little involvement in this type of economy. It is a common economy across countries whose governments don't wish to involve themselves directly in general business for varying reasons. These types of economies are commonly adopted across the world for varying reasons such as they have a large country and it would be very hard to control all of the country so that it has an even amount of funding for businesses, schools and health care.
Countries that have market economies include the United States, Canada and Australia. These countries have market economies because it suits their population. In Australia, for example, the population wants a market economy because in a market economy they get to choose in a round about fashion what is put on the shelves in supermarkets. Say for example Coles has a 5 Kilo piece of meat on their shelves and that doesn't sell. There is not point in keeping that there because it wont sell and is therefore not making any money and also just taking up space. As is the same with other countries. In that sense the consumers choose what is put on the shelves of supermarkets and for the cheapest price possibly. The sellers will try and make as much as they possibly can whilst having the most reasonable prices. They will also keep a record of what sells and what doesn't so they know what to keep on their shelves and what to remove.