Free Market Economy is an economy ruled by the people, not the government. It grants freedom to producers who now only have to make what is needed and wanted, not what the government decides is needed and wanted. And the buyers, producers, and sellers control prices, with almost no government interference.
Characteristics of market economy
In a Free Market Economy, the buyers, producers, and sellers control all prices, with very little government interference. This is a very important characteristic of the market economy because the government mostly controls the prices in the United States, with very small change by the people. This shows that if you are in a market economy you are less likely to be scammed out of your money. You will literally pay for what you're getting and not for more. That is my first characteristic of the market economy.
The Free Market Economy is an economy ruled by the people, not the government. This is also an important characteristic of the market economy because again, in the United States the government controls the majority of economic activity with slight change made by the people. The people get to choose almost every aspect of the economy, the prices, and how much or little the producers will produce. This is my last characteristic of the market economy.
Advantages and disadvantages of market economy
* the market produces a wide variety of goods and services to meet the consumer's wants * the free market responds quickly to people's wants
* the market system encourages the use of new and better methods and machines to produce goods and services Disadvantages:
* factors of production will be employed if only it's profitable to do so * the free market can fail to provide certain goods and services * the free market may encourage the consumption of harmful goods * the social effects of production may be ignored
* the market system allocates...