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Market Economy

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Maaz Akhtar

on 27 April 2011

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Transcript of Market Economy

Market Economy Market Economy- A system in which business and consumers decide what they will produce or purchase Market Economy is based around Supply and Demand Supply and Demand- the relationship between the production and consumption of goods and services Market- the area of trade or business Some examples for Market Economy would be: You buy a bull to build up a herd of dairy and beef cattle to sell. Economic Depression- A time of un employment, low prices, low profits, and loss of business. Choosing between protecting the enviroment, and allowing the growth of business can be very difficult. Responsible companies seek to limit their impact on the enviroment. Communities want jobs and growth but damage to the environment can have serious long term effects on the environment The Five Economic Questions Who Produces Goods and Services? What Goods and Services Are Produced? How are Goods and Services Produced? For Whom are Goods and Services Produced? How are Goods and Services Distributed? Market Economy is driven by profit that infleunces the five economic questions Major corperate comapnies that can mass produce items in demand E.g. Walmart, Future Shop Stores that can cheaply produce large quantities of items in demand to better in this type of market Items that are in great demand are products that companies focus on the most E.g. clothing, apliances, electronics,
food Major corperate comapnies that can mass produce items in demand They are produced for people and anyone who can pay for the products. Goods And services are distributed through different types of transportation methods Some types of transportation methods are boats, trucks, through air, cargo trains
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