Market-based Economy
A Market-based Economy is an economy that relies extensively on economic markets.
- Context:
- It can (typically) be affected by Supply and Demand Behaviors.
- It can (typically) be modeled as a Competitive Human System.
- It can range from being (typically) being a Mixed Market Economy to being a Pure Market Economy.
- It can range from being a Lightly-Regulated Market-based Economy to being a Tightly-regulated Market-based Economy (such as a Protectionist Economy).
- It can range from being a Well-Functioning Market-based Economy to being a Failed Market-based Economy.
- It can range from being a National Market-based Economy to being a Municipal Market-based Economy (such as Hong Kong's).
- Example(s):
- Counter-Example(s):
- a Centrally-managed Economy, such as a Statist Economic System / Socialistic Economy, such as North Korea's Economy.
- an Anarchist Economic System.
- See: Competitive Multiagent System, Mixed Economy, Global Economy, European Economy, Economic Rationalism, Capitalistic Economy, Socio-Economic System.
References
2013
- http://en.wikipedia.org/wiki/Market_economy
- A market economy is an economy in which decisions regarding investment, production and distribution are based on supply and demand,[1] and prices of goods and services are determined in a free price system.[2] The major defining characteristic of a market economy is that decisions regarding investments and the allocation of producer goods is accomplished primarily through markets.[3] This is contrasted with a planned economy, where investment and production decisions are embodied in a plan of production.
Market economies can range from hypothetical laissez-faire and free market variants to regulated markets and interventionist variants. In reality market economies do not exist in pure form, since societies and governments regulate them to varying degrees.[4][5] Most existing market economies include a degree of economic planning or state-directed activity, and are thus classified as mixed economies. The term free-market economy is sometimes used synonymously with market economy, but it may also refer to laissez-faire or Free-market anarchism.[6]
Market economies do not logically presuppose the existence of private property in the means of production; a market economy can consist of various types of cooperatives, collectives or autonomous state agencies that buy and sell capital goods with each other in a free price system.[7] There are many variations of market socialism that involve employee-owned enterprises based on self-management that operate in markets, as well as models that involve public ownership of the means of production where capital goods are distributed through markets.[8]
The term market economy used by itself can be somewhat misleading. For example, the United States constitutes a mixed economy (substantial market regulation, agricultural subsidies, extensive government-funded research and development, Medicare/Medicaid), yet at the same time it is foundationally rooted in a market economy. Different perspectives exist as to how strong a role the government should have in both guiding the market economy and addressing the inequalities the market produces.
- A market economy is an economy in which decisions regarding investment, production and distribution are based on supply and demand,[1] and prices of goods and services are determined in a free price system.[2] The major defining characteristic of a market economy is that decisions regarding investments and the allocation of producer goods is accomplished primarily through markets.[3] This is contrasted with a planned economy, where investment and production decisions are embodied in a plan of production.
- ↑ Gregory and Stuart, Paul and Robert (2004). Comparing Economic Systems in the Twenty-First Century, Seventh Edition. George Hoffman. p. 538. ISBN 0-618-26181-8. "Market Economy: Economy in which fundamentals of supply also demand provide signals regarding resource utilization."
- ↑ Altvater, E. (1993). The Future of the Market: An Essay on the Regulation of Money and Nature After the Collapse of "Actually Existing Socialism. Verso. p. 57.
- ↑ Paul M. Johnson (2005). "A Glossary of Political Economy Terms, Market economy". Auburn University. http://www.auburn.edu/~johnspm/gloss/market_economy. Retrieved 28 December 2012.
- ↑ Altvater, E. (1993). The Future of the Market: An Essay on the Regulation of Money and Nature After the Collapse of "Actually Existing Socialism. Verso. pp. 237–238.
- ↑ Tucker, Irvin B. p 491. Macroeconomics for Today. West Publishing. p. 491
- ↑ "market economy", Merriam-Webster Unabridged Dictionary
- ↑ Paul M. Johnson (2005). "A Glossary of Political Economy Terms, Market economy". Auburn University. http://www.auburn.edu/~johnspm/gloss/market_economy. Retrieved 28 December 2012.
- ↑ Bock man, Johanna (2011). Markets in the name of Socialism: The Left-Wing origins of Neoliberalism. Stanford University Press. ISBN 978-0-8047-7566-3..