Market economies

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  • Created by: izzy
  • Created on: 08-06-13 22:03

In a pure market economy, the market mechanism (the price mechanism and market forces) performs the central economic task of allocating scarce resources among competing uses. A market economy comprises a large number of markets varying in the degree to which they are separated from and interrelated with each other.

A market is a meeting of buyers and sellers in which goods or services are exchanged for other goods or services. Occasionally, the exchange is direct and is known as barter. More usually, however, the exchange is indirect with buyers and sellers using money. One good or service, such as labour, is exchanged for money, which

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