what are the six characteristics of a market economy?
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Brief explanations are given for these characteristics of the market system: private property, freedom of enterprise and choice, the role of self-interest, competition, markets and prices, the reliance on technology and capital goods, specialization, use of money, and the active, but limited role of government.
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['Needs, wants, and demands,', 'Market offerings such as products, services, and experiences,', 'Value, satisfaction, and quality,', 'Exchange, transactions, and relationships, and.', 'Markets.']
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While a market economy has many advantages, such as fostering innovation, variety, and individual choice, it also has disadvantages, such as a tendency for an inequitable distribution of wealth, poorer work conditions, and environmental degradation.
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Key Takeaways A market economy functions under the laws of supply and demand. It is characterized by private ownership, freedom of choice, self-interest, optimized buying and selling platforms, competition, and limited government intervention. Competition drives the market economy, optimizing efficiency and innovation.
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Economic Characteristics. The four economic characteristics of land that affect its value as a product in the marketplace are Scarcity, Improvements, Permanence of Investment, and Location or Area Preference.
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['Customers form the majority in the market.', 'Customer needs and wants are more "general" & less "specific"', 'Associated with higher production output and capacity (economies of scale)']
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What are the essential elements of market economies? Advantages are efficiency and productivity, economic free choice, economic growth, and innovations. Disadvantages are unequal distribution of wealth, lack of a good way to provide for public goods.
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['Scarcity and Choice.', 'Efficiency(Productive & Allocative)', 'Price System(Demand and supply, utility and indifference curve)', 'Types of market structures(perfect competition, monopoly, oligopoly etc)', 'Factor market like the labour market.']
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Chap 1 1) Primary defining characteristics of macroeconomics: Aggregate behaviour of consumer and firms, the behaviour of governments, the overall level of economic activity in individual countries, the economic interactions among nations, and the effects of fiscal and monetary policy.
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OLIGOPOLY, CHARACTERISTICS: The three most important characteristics of oligopoly are: (1) an industry dominated by a small number of large firms, (2) firms sell either identical or differentiated products, and (3) the industry has significant barriers to entry.
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['Tastes and Preferences of the Consumers: ADVERTISEMENTS: ... ', 'Income of the People: ... ', 'Changes in Prices of the Related Goods: ... ', 'Advertisement Expenditure: ... ', 'The Number of Consumers in the Market: ... ', "Consumers' Expectations with Regard to Future Prices:"]
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['(i) Product:', '(ii) Market:', '(iii) Middlemen:', '(iv) Company:', '(v) Marketing Environment:', '(vi) Competitors:', '(vii) Customer Characteristics:', '(viii) Channel Compensation:']
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['Each firm is small relative to the market and has no influence on price.', 'Firms and products are substitutable.', 'Each consumer is small relative to the market and has no influence on price.', 'Perfect information about prices and quantities is available.', 'There is easy entry into and exit from the market.']
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['Traditional economic system. ... ', 'Command economic system. ... ', 'Market economic system. ... ', 'Mixed system.']
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['Microeconomics – concerned with individual markets and small aspects of the economy.', 'Macroeconomics – concerned with the whole aggregate economy. Issues such as inflation, economic growth and trade.']
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Terms in this set (18) What are the six major characteristics of a pure market economy? Freedom of enterprise, little or no government control, freedom of choice, private property, profit incentive, and competition.
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Each has its own distinguishing characteristics, although they all share some basic features. Each economy functions based on a unique set of conditions and assumptions. Economic systems can be categorized into four main types: traditional economies, command economies, mixed economies, and market economies.