MARKET ECONOMY. PRIVATE PROPERTY Buyers and sellers are free to own and use private property

MARKET ECONOMY

PRIVATE PROPERTY

• Buyers and sellers are free to own and use private property.

GOVERNMENT INVOLVEMENT

• Buyers and sellers must be free to operate with minimal government intervention.

VOLUNTARY EXCHANGE

• Buyers and sellers act in their own self-interest when doing business together.

PROFIT

• Sellers are free to make as much profit as they can.

COMPETITION

• Sellers can use any method (legally) in order to get consumers to buy their products

CONSUMER SOVEREIGNTY

• Consumers are free to buy almost anything they want (legally). They vote with their dollars.

SPECIALIZATION• Buyers and sellers are able to concentrate

their efforts in areas where they have an advantage.

Impact of Market EconomiesADVANTAGES DISADVANTAGES

Economic Freedom – jobs, purchases

No public goods – national defense

Political Freedom No welfare systemQuicker response to change

Unequal distribution of wealth

Profit Unequal opportunities