Chapter 2 21 another key market characteristic of

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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 consumers. 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.

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