2023Ch2SumMcBr - The Market System Chapter 2 Outline...

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The Market System Chapter 2
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Outline Characteristics of market systems Role of government Market systems and efficiency The market system at work
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Characteristics of market systems The following are the characteristics of market systems: Limited government Private ownership of resources Considerable economic freedom Consumer sovereignty Price as the signaling mechanism Competition The role of government in a market economy is to establish laws that will enable the economy to operate effectively. Police enforcement, a system of product standards, and establishing a money unit are included. In pure market systems, the role of government is limited and not extensive as a percentage of overall economic activity.
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Characteristics of market systems (continued) For the most part, individuals and business firms own the resources, not the government. People also have considerable economic freedom such as freedom of
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This note was uploaded on 02/22/2011 for the course ECON 2023 taught by Professor Meier during the Spring '11 term at St. Petersburg College.

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2023Ch2SumMcBr - The Market System Chapter 2 Outline...

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