IB Economics Paper 1 - Features of Market Economy

1 (A)Explain the main qualitys of a commercialise thriftiness, also called the lighten food commercialize parsimoniousness and uncaring enterprise sparing is an frugal scheme based on the distribution of economic goods where mystical individuals have got the factors of production (land, capital, labor and enterprise) and decide what to produce. Prices of goods and work are intractable in a free hurt system direct by the function of acquire and supply. For example, the worth of thick jackets testament drop in summer because there is more demand of it in the winter. A market saving often contrasts with other economic system called the planned saving, where there is a central government tickling the factors of production, what to produce, and goods apply a amend price system. The main traces of a market economy includes the virginal market and the mixed market economy, private ownership of the way of life of production, the profit motive, self interest, as piration between firms, signaling and circumscribe function of prices, and the private and open sectors. In the real world, the political theory of a lissom market economy and a pure planned economy does not exist, because all the countries have a government to control and regulate its own economy. According to the ability of Economic indicator by Heritage Foundation, Hong Kong is considered the freest economy in 2008 ? 90.

3% free from government interventions. Therefore, most of the countries in the world are a mixed economy leaning towards the free market, with the exclusion of northeastward Korea and Cuba who leans towards socialism and the planned! economy. Other examples of the free market economy include UK, US, France, Russia, and China etc. A main characteristic of the market economy has no central planning charge the system; However, Adam smith says that there is an ?invisible configuration? that guides it, signaling... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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