Market Economy
What is a Market economy?
An economic system that is driven by supply and demand and has minimal government intervention.
What is supply and demand?
It's the idea that prices go up when things are wanted more and down when there’s lots of them.
Why is competition in a market economy important?
Because it helps keep fair prices, improves quality of product, and gives customers the choice of what they are going to buy.
What is an example of a service that would be provided by the government in a market economy?
Public education, because not everyone can afford private school, and the government wants everyone to have a chance to learn. And healthcare, because the free market may not provide affordable healthcare to everyone.
What's a reason for the government to intervene in a market economy?
To fix problems like pollution, ensure fairness, protect consumers, and support essential services.