Studied by 7 people
market economic system also known as
free market economy
market economic system
an economic system in which private producers make decisions on how to manage the economy
all resources are owned by
private producers
is there government control
no
what is the maintenance
profit
how do you know what to produce
combination of cheapest resources
advantages
higher efficiency and productivity, higher competition, more variety
disadvantages
unequal income, if only one producer, a monopoly can occur, increase of unemployment
monopoly
a commodity or service in the exclusive control of a company or group
Note
Flashcard