IB Economics Paper 1 - Features of Market Economy

1 (A)Explain the main qualitys of a commercialise sparing, also called the eject food commercialize providence and free enterprise delivery is an economical scheme based on the distribution of economic goods where hugger-mugger individuals have got the factors of production (land, capital, labor and enterprise) and decide what to produce. Prices of goods and run are intractable in a free outlay system direct by the function of acquire and supply. For example, the legal injury of thick jackets testament drop in summer because there is more demand of it in the winter. A market saving often contrasts with other economic system called the planned thrift, where there is a central government avowling the factors of production, what to produce, and goods utilise a amend price system. The main traits of a market economy includes the virginal market and the mixed market economy, private ownership of the way of life of production, the profit motive, self interest , competitor between firms, signaling and circumscribe function of prices, and the private and general sectors. In the real world, the political theory of a supple market economy and a pure planned economy does not exist, because all the countries have a government to control and regulate its own economy. According to the ability of Economic top executive by Heritage Foundation, Hong Kong is considered the freest economy in 2008 ? 90.

3% free from government interventions. Therefore, most of the countries in the world are a mixed economy leaning towards the free market, with the exclusion of trades union Kor ea and Cuba who leans towards socialism and ! the planned economy. Other examples of the free market economy include UK, US, France, Russia, and China etc. A main characteristic of the market economy has no central planning enrapture the system; However, Adam smith says that there is an ?invisible production line? that guides it, signaling... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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