Sterling Terrell

smart ideas from books (mostly)

  • Home
  • About
    • My CV
    • Books
    • Series
  • Newsletter
  • Advertising
  • Tools
You are here: Home / Potpourri / Economics 101: What Is A Market Economy?

Economics 101: What Is A Market Economy?

Economics 101: What Is A Market Economy?

[This is part of the series: The Complete Guide To Economics 101.]

There are many different ways of organizing an economy.That is, allocating the scarcity of goods and services that exist in the world.

Most types, however, fall under two broad categories.

  • A market economy, or sometimes called a “free-market” economy. 
  • And an economy where resources, production, and allocation are done by a third party.

Many times, the organization of the economy by a third party is done by the government.

A Market Economy is where individuals, and businesses owned by individuals, are free to harvest resources, allocate resources through prices, and buy and sell as they see fit.

Individuals can choose what they want to buy, what they are willing to pay for, and what businesses they want to start.

Businesses can choose what goods to manufacture and market, and what prices they will charge.

A market economy is nothing but the collective result of millions of people, making billions of decision, as they live every day of their own accord.

Share this:

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on Pinterest (Opens in new window)
  • Click to share on Tumblr (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Reddit (Opens in new window)
  • Click to share on Pocket (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)

Related

Filed Under: PotpourriTagged With: #Economics101

Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Privacy Policy

Subscribe to Blog via Email

Notifications of all new posts by email.

Connect

  • Facebook
  • LinkedIn
  • Pinterest
  • Twitter

Search

Top Posts

  • The Tricky Lily Pad Riddle (You Probably Can't Solve)
    The Tricky Lily Pad Riddle (You Probably Can't Solve)
  • Hyatt Hill Country Sunday House
    Hyatt Hill Country Sunday House
  • Competition Cheer
    Competition Cheer
  • The Romeo And Juliet Effect Causes Young Love To
    The Romeo And Juliet Effect Causes Young Love To
  • 31 Persuasion Tips That I Learned From Scott Adams
    31 Persuasion Tips That I Learned From Scott Adams
  • The Tragedy Of Gina "Bronco" Bouza (1932-1957)
    The Tragedy Of Gina "Bronco" Bouza (1932-1957)
  • On Having The Vision and Drive To Execute
    On Having The Vision and Drive To Execute
  • Our Mercenary Heart
    Our Mercenary Heart
  • A World Of Blind Pitiless Indifference?
    A World Of Blind Pitiless Indifference?
  • The Start-up Life
    The Start-up Life

Supporting = Loving

Buy Me a Coffee

Recent Posts

  • The High-Priced, Low-Volume Strategy
  • The Most Useless IT Job
  • I Thought She Had Said Bad Man
  • On Having The Vision and Drive To Execute
  • On Micro.Blog

Copyright © 2023 · Generate Pro On Genesis Framework · WordPress · Log in