Notesale: Turn your study into money

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Extracts from the notes are below, to see the PDF you'll receive please use the links above

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Andrew E
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A market economy is mainly characterized by the fact that the decisions are made by the
buyers and the sellers not the government
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A market economy is mainly ruled by
supply and demand, meaning that services and/or goods that are in high demand will be in
short supply and be high in cost
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As a result it is inefficient and shortages and/or surpluses often happen
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Advantages of a market economy:
1
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Thus they are encouraged by the incentive of profit in order to work harder and
achieve a better quality of life
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Since property is privately owned those who own it can profit off of it by allowing them to
make legally binding contracts to sell, lease, buy or rent their property
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There is competition present meaning that goods and services are balanced by competitors
as there is no single entity that owns the service or good without competition and as a result
they have to keep prices fair
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There are many people who are put at a disadvantage such as the elderly and the children
due to natural selection
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It is a system that generates greed as many people are only incentivised by profit
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It is an unfair system as the rich tend to get richer while the poor get poorer

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