Market / Mixed Economy
Examples of Market Economy
The market for the purchase of goods and services. Product Market.This market isn't a place as much as a set of activities. Whenever or wherever the consumer purchases goods or service, at a local mall or online services.
Factor market- market for the factors of production—land, labor, capital, and entrepreneurship.
Economic and political freedom- Freedom is one of the chief advantages of a market economy. A market economy requires that individuals be free to make their own economic choices, mostly because it depends on the consumers’ right to buy or refuse to buy.
Profit- Profit motive is a key factor of a market economy. It insure that resources will be allocated efficiently, since inefficiencies would result in lower profits.
Competition- competition leads to higher-quality products at lower prices, such as gas. For example, wherever you see a Wawa, there is a 711 across the street, and Wawa is dominating with lower prices and more options than 711.
Pure market economy- A pure market economy does not have a structure for providing public goods and services, such as national defense. The reason for this being, that it would not be profitable from a strict economic viewpoint. Also a pure market economy is unable provide security, whether it be sickness or age, it cannot be economically productive.