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15y ago

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What is the key principle of a market economy?

businesses are owned by the people collectively


Disadvantage of market economy?

One of the key disadvantages of a market economy is that it is unpredictable. Many events can cause shocks in a market economy. For instance, a natural disaster or war can cause volatility in the market. A lack of stability is the key feature of the market economy.


What are the three aspects in free market economy?

The three aspects in free market economy are capitalism is a free market system of trade, governed exclusively on the economic principle of supply and demand. You need all of these to have a free market economy.


What are the factors for capitalism?

-free market economy and a system based on the principle of individual rights


Who was known as the father of the free market economy?

American economist Milton Friedman is known as the father of the free market principle.


What is a key part pf laissez-faire economic policy?

free market economy


Which two key groups make up a free market economy?

household and firms


What is the principle idea that the invisible hand of competition sets prices and determines quantities produced in a market economy?

Adam Smith


What is Bolivia economy?

Market Economy.


What factor is key in differentiating subsistence economies from market and planned economies?

The amount of government involvement in the economy.


Which countries have a market economy?

Almost every country has a market economy; North Korea still has a command economy. WRONG^^ U.S. is rumored to be a market economy, but there are not pure market economy.


Does China have a market economy?

No, china does not have a market economy!