Countries that emphasize individual goals over collective goals tend to have a market economic system.
The principle behind the market economy system is based on a free market. This implies that the government exercises little control over the market. The involvement of government in a market economy is limited and it does not regulate the critical or important aspect of the economy.
<h2>Further Explanation</h2>
The market economic system is controlled by the people and is highly characterized by the relationship between demand and supply.
In a market economy system, the people determine supply and demand; they decide on their own on how to use factors of production.
The people have the liberty to decide who they wish to patronize, the people they prefer to work with and can also decide the kind of business they create or run.
In a market economic system, you are free to invest or become an entrepreneur by establishing your own business.
The US is a typical example of a market economy system. It is a free market where people can make their own choices.
Apart from the market economy system, there are also other types of economic system and these include:
- command economies
- traditional economics.
Also, some other countries that practices market economics system include:
- Switzerland,
- Australia,
- The Republic of Congo
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KEYWORDS:
- collective goals
- economic system
- market economic system
- command economic system
- traditional economic system
