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Who decides what to produce and how much to charge in a market economy?
Wiki User
∙ 10y ago
Generally speaking, in a free market economy, the consumer is the most reliable source of information on this economic question. In planned economies, for whatever reason, the government makes those decisions. Examples of that not being a sound economic policy was recently born out on North Korea. There the central government decided to devote more of its economy to weapons & defense on a percentage basis more than any other country. Its neglect of not paying more attention to farming resulted in a famine of sorts about 18 months ago.
Wiki User
∙ 10y ago
Anonymous
What to produce
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What type of economy is it when people decide what to produce how much of it to produce and how much to charge for the product?
Free/market economy
Who decides what is produced in a market economy?
Entrepreneurs
What are the advantages of open market system?
A market economy (also called a free market economy or a free enterprise economy) is an economic system in which the production and distribution of goods and services take place through the mechanism of free markets guided by a free price system. In a market economy, businesses and consumers decide of their own volition what they will purchase and produce. Technically this means that the producer gets to decide what to produce, how much to produce, what to charge to customers for those goods, what to pay employees, etc., and not the government. These decisions in a free-market economy are influenced by the pressures of competition, supply, and demand. This is often contrasted with a planned economy, in which a central government decides what will be produced and in what quantities. No pure market economy exists. Thus, almost all economies in the world today are mixed economies which combine varying degrees of market and command economy traits. For example, in the United States there are more market economy traits than in Western European countries. The advantages of a free market economy are for example - supply and demand
Who decides who Consumes goods and services in a market economy?
Consumers
Who decides what goods and services will be produced in a market economy?
In a market economy, it is the producer, typically influenced by the demands of the consumer, who makes decisions about what to produce. This is in contrast to a command economy where the government makes those decisions.
What type of economy is it when people decide what to produce how much of it to produce and how much to charge for the product?
Free/market economy
Who decides what is produced in a market economy?
Entrepreneurs
What are the advantages of open market system?
A market economy (also called a free market economy or a free enterprise economy) is an economic system in which the production and distribution of goods and services take place through the mechanism of free markets guided by a free price system. In a market economy, businesses and consumers decide of their own volition what they will purchase and produce. Technically this means that the producer gets to decide what to produce, how much to produce, what to charge to customers for those goods, what to pay employees, etc., and not the government. These decisions in a free-market economy are influenced by the pressures of competition, supply, and demand. This is often contrasted with a planned economy, in which a central government decides what will be produced and in what quantities. No pure market economy exists. Thus, almost all economies in the world today are mixed economies which combine varying degrees of market and command economy traits. For example, in the United States there are more market economy traits than in Western European countries. The advantages of a free market economy are for example - supply and demand
Who decides who Consumes goods and services in a market economy?
Consumers
Who decides what goods and services will be produced in a market economy?
In a market economy, it is the producer, typically influenced by the demands of the consumer, who makes decisions about what to produce. This is in contrast to a command economy where the government makes those decisions.
What are the Advantages of open system?
A market economy (also called a free market economy or a free enterprise economy) is an economic system in which the production and distribution of goods and services take place through the mechanism of free markets guided by a free price system. In a market economy, businesses and consumers decide of their own volition what they will purchase and produce. Technically this means that the producer gets to decide what to produce, how much to produce, what to charge to customers for those goods, what to pay employees, etc., and not the government. These decisions in a free-market economy are influenced by the pressures of competition, supply, and demand. This is often contrasted with a planned economy, in which a central government decides what will be produced and in what quantities. No pure market economy exists. Thus, almost all economies in the world today are mixed economies which combine varying degrees of market and command economy traits. For example, in the United States there are more market economy traits than in Western European countries. The advantages of a free market economy are for example - supply and demand
In Which type of economy does the government decide what to produce how to produce and for whom to produce?
Controlled.
What type of economy does individuals and private groups make decisions about what to produce?
Market economy
What Type of economy in which the government decides which goods and services will be available?
A command economy is one in which the government decides which goods and services will be available. There is officially no free market in a command economy.
What is the difference between traditional economy and market economy?
In a {Traditional Economy}, economic decisions are based on customs handed down from generation to generation. In a {Market Economy} individuals make their own decisions about what to produce how to produce it & for whom to produce it.
What are disadvantages to a market economy?
A Market economy is reffered to as an economy in which the consumers decide what to produce, How to produce and For whom to produce. There are several disadvantages of a market economy. The main one being an inefficient allocation of resources refered to as market failure. Firstly, some good and services would be under provided such as defence and education.
For whom are goods services produce in a market economy?
In a market economy, goods and services are produced for consumers.
