Market Systems

Market Systems

Free Market Economy

The market economy indicates an economic system, in which the distribution of decision and action is the rights of the legal institution of private ownership. Planning and coordination of economic processes is decentralized. The individual use plans of households and businesses and the development plans are coordinated by market prices. This coordination includes the one hand, the allocation and distribution of individual goods by market prices and on the other hand, the allocation and distribution of public goods by policy decisions. The market economy is a self-regulating system, which requires the decision-making and freedom of action of ...