market economy???????????

Elissa Curlin: Eamples of market economies: The United States, United Kingdom, Germany, France, Canada, Australia, New Zealand, South Korea, Japan

May Stands: A market economy is when firms (businesses if you prefer) determine how many goods and services are to be produced and how much is to be charged for them in markets. This is due to the forces of demand and supply. So to take a basic example McDonalds determine how many hamburgers they will make and how much they will charge. This happens with all the private owned firms across the economy.A market economy contrasts to a planned economy where the government determines how much of a good is to be produced and how much is to be charged for it. This happens in Cuba and the former USSR. So in a planned economy they will set a quota for how many jeans are to be produced in a year, then they set the price for what they will be sold at. This happens economy wide. In the USSR they did this using things called Gosplans.! In reality there is no such thing as a pure market economy. Every economy has a blend of market and command economy. Many people believe the USA is the closest example to a market economy however even in the USA the government provides goods and services to people. Look at the recent Freddie Mac and Fannie Mae. Economist Milton Friedman once said he thought Hong Kong was the most market based economy in the world. Hope that helps....Show more

Maynard Phoubandith: Eamples of market economies: The United States, United Kingdom, Germany, France, Canada, Australia, New Zealand, South Korea, Japan, etc. Howevr, there is probably no really free market economy. Most advanced western economies are market economies but the extent of government intervention is present in all these economies in varying degrees.An economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's citizens and businesses! and there is little government intervention or central planni! ng. This is the opposite of a centrally planned economy, in which government decisions drive most aspects of a country's economic activity.Market economies work on the assumption that market forces, such as supply and demand, are the best determinants of what is right for a nation's well being. These economies rarely engage in government interventions such as price fixing, license quotas and industry subsidizations.While most developed nations today could be classified as having mixed economies, they are often said to have market economies because they allow market forces to drive most of their activities, typically engaging in government intervention only to the extent that it is needed to provide stability. Although the market economy is clearly the system of choice in today's global marketplace, there is significant debate regarding the amount of government intervention considered optimal for efficient economic operations.A market economy (also called a free market econo! my or a free enterprise economy) is an economic system in which the production and distribution of goods and services take place through the mechanism of free markets guided by a free price system.[1][2] In a market economy, businesses and consumers decide of their own volition what they will purchase and produce. Technically this means that the producer gets to decide what to produce, how much to produce, what to charge customers for those goods, what to pay employees, etc., and not the government. These decisions in a free-market economy are influenced by the pressures of competition, supply, and demand. This is often contrasted with a planned economy, in which a central government decides what will be produced and in what quantities.No pure market economy exists. Thus, almost all economies in the world today are mixed economies which combine varying degrees of market and command economy traits. For example, in the United States there are more market economy traits than i! n Western European countries.[Friedrich Hayek, and other classical libe! rals, have argued that market economies allow spontaneous order; that is, "a more efficient allocation of societal resources than any design could achieve." According to this view, in market economies sophisticated business networks are formed which produce and distribute goods and services throughout the economy. This network was not designed, but emerged as a result of decentralized individual economic decisions. Supporters of the idea of spontaneous order trace their views to the concept of the invisible hand proposed by Adam Smith in The Wealth of Nations who said that the individual who:"intends only his own gain is led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for society that it was no part of it. By pursuing his own interest [an individual] frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for ! the [common] good." Supporters of this view claim that spontaneous order is superior to any order that does not allow individuals to make their own choices of what to produce, what to buy, what to sell, and at what prices, due to the number and complexity of the factors involved. They further believe that any attempt to implement central planning will result in more disorder, or a less efficient production and distribution of goods and services.A true free market economy is an economy in which all resources are owned by individuals, and in which decisions about the allocation of those resources are made by individuals without government intervention.The United States has restrictions on the attainment of monopoly, but also grants monopoly rights in some cases. Fewer restrictions are found in other countries, such as in Hong Kong and Singapore, according to the Index of Economic Freedom....Show more