Market and Mixed Economy

Market Economy

  • People are free to own and sell private property
  • Government has minimal interaction between these transactions

    -  Leads into the idea of no government interference in the marketplace with the idea of Laissez faire
  • Both sides agree or feel that they are getting the better end of the deal, which is all voluntary
  • People can choose what they want to buy as they have consumer sovereignty
  • Competition allows for similar products or services that have minor differences and different prices to be produced to compete with the major brand or product
  • Sellers can change whatever they want to increase their profits
  • They can move around to increase their benefits by selling to different people in different areas
  • Usually goes with Capitalism where people are able to privately own factors of production

Mixed Economy

Has a mix of Market, Command, and Traditional Economies
Market Economy can be seen above in details above

Command

  • Leads into the different, yet similar, ideas of Socialism, Communism, and Authoritarian
  • Parts can be used with a Market Economy so the government can prevent monopolies, issue product control for consumer safety, regulations on parts of the economy that could cause a depression, and so on

Traditional

  •   Works really well in some parts of a Market Economy
  • They are free to produce and sell what they want, if they want to make shoes for ten generations and spread sales from their hometown to around the world, they can
  • They can work with non-traditional businesses partners to buy resources needed to produce those shoes
  • They can still produce those shoes in the workshop above their store which also has their home on the top floor
  • Traditional Economy transactions can still thrive in smaller communities that don't have easy access to a mass producer of the same product or the item or service they provide isn't offered by any mass producer
  • Downside to having an chance to still be around, due to their slow to change or expand mentality, they can be easily thrown out-of-business to mass producing competition

Comment Stream

2 years ago
0

Missing examples

2 years ago
0

Good explanation's on what is there, But you're missing examples and the economic questions