Answer to Question #232152 in Economics for CCW

Question

Market Economic System:

Read the paragraph and answer questions below

1. Who controls factors of production?
2. Describe this system, use vocab words
3. Where might you find this system in world today?

Link: https://drive.google.com/file/d/1ZDZQcq9LXRbUyg-ahs4__2o8BaR4ZWG8/view?usp=drivesdk

Answer 1

1. In the market economic system, private entities control factors of production.
2. A market economy functions under the laws of supply and demand. It is characterized by private ownership, freedom of choice, self-interest, buying and selling platforms, competition, and limited government intervention. Competition drives the market economy as it encourages efficiency and innovation.
3. The market economic system is typical for the EU countries, the USA, Canada, Australia.