Wednesday, September 18, 2013
This week will be a very busy week, because we got a lot of classwork, and we have a test on personal finance class, this week we studied about market economic and economic, this would be very interest,Market economy (also known as the free market economy and free enterprise economy) is an economic system, in the production and sale of this system products and services free price mechanism completely by the free market guide, rather like the planned economy in general by the national guide. Market economy is also used as a synonym of capitalism. In a market economy does not have a central coordination system to guide its operation, but in theory, the market will be through the products and services of the supply and demand of complex interactions, and then reach the effect of self organization. Market economy proponents often advocate, people pursuit of self-interest is one of the best interests of society. And The planned economy, or the planned economy system, also known as the command economy, is a kind of economic system, and this system, countries in the production, resource allocation and product consumption areas, were made by the government or consortium planning ahead of time. Since almost all the planned economic system is dependent on the government's mandatory plan, therefore the planned economy is also known as the "command economy". Three kinds of economic system and the rest of the market economic system, the traditional economic system and the mixed economy system.
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Yes I agree that self-interest is one of the most important factors in a market economy because it causes people to produce the best thing for the best price and through self-interest people all do their best in order to make the most out of their work or money.
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