Unformatted text preview: arket characteristic of market systems
involves freedom of enterprise and freedom of
choice. Freedom of enterprise allows businesses and
entrepreneurs to obtain and employ resources in any
creative manner necessary to satisfy market demand
so long as doing so is legal.
Freedom of choice allows business owners the latitude
to purchase or dispose of any personal property as
they see fit. This capacity provides business owners
with the flexibility to grow and shrink quickly and
represents another important efficiency mechanism
embedded within capitalism. Alternatively, consumers
are afforded total freedom of choice in the market
place as well. Although most free market participants
take these functions for granted, someone living in a
command system would immediately recognize exactly
how important freedom in the market truly is. Freedom
to choose and quickly change on the production level
equates to even more freedom of choice for
Self-interested behavior results in increasing
efficiency in a market system. The presence of selfinterest...
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This note was uploaded on 09/10/2009 for the course ECO 2251 taught by Professor Kirkland during the Spring '09 term at Troy.
- Spring '09