What is a market economy

What is a market economy

Each person has repeatedly heard about the market economy. But few of us know what it really is. But different funds The mass media pay a lot of attention to the market economy.

1
The market economy is a system based on private ownership, freedom of competition and choice. The market economy can restrain the role of the government in the fate of the country's economy. This concept came to us to change the command system. In this regard, Russia was tightly close to capitalism.

2
The main feature of the market economy is the transition from state ownership to private. Also, one of the principles is free private entrepreneurship. Price politics came out due to control state and stated depend on competition and solvency population. But in the same time The state is the most important link in the social development of a market economy.

3
Market Economy construction on  market self-regulation. The branches of state power only make adjustments to the actions of market participants. The division structure of this type of economy determines only the link buyer - the manufacturer.

4
The social disadvantages of the market economy include social inequalities, monopolization, high inflation and the growing unemployment rate. The main contradictions include failure to Market response the needs of society for the development of the latter, as well as to fully take into account social the needs of society.

5
The advantages of the market economy include the desire to take into account the interests of consumers, without forgetting about their own benefits. Free competition that provides improved product quality   yet One important plus market. Market mechanisms provide participants in market relations relative freedom of choice.

The market economy is not able to provide social guarantees to participants in economic activity. Racing in market behavior may be accompanied by crisis, in which production stops, and unemployment increases.

 

Comments leave a comment
Sokolov Igor 08/06/2018 at 17:33

There is an opinion that in the adjective "market" root "market". Then give an example of a non-market economy, i.e. Economy outside the market. With respect, Sokolov I.V.

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