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Characteristics of a Market Economy and the Reasons for Government Intervention

Economics

2 Pages Essays / Projects Year: Pre-2020

A market economy is an economy in which decisions regarding investment, production, and distribution are based on the supply and demand of consumers, and prices of goods and services which are determined in a free price system. The six major defining characteristics of a market economy is that the economy is ruled by the people/consumers and not by the government and it is up to the people to choose what is to be produced in order to satisfy their needs and wants...


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