What guides economic activity in a market economy? - ProProfs Discuss
Advertisement

What guides economic activity in a market economy?

What guides economic activity in a market economy?<br/>

Change Image    Delete

Asked by Cypriot, Last updated: Feb 02, 2023

+ Answer
Request
Question menu
Vote up Vote down

4 Answers

l.Steven

l.Steven

l.Steven
L.Steven

Answered Jan 07, 2018

The market economy is a special kind of economy in which the economic decisions and ultimately the market is guided by self-interests and the prices. There is little, if any government intervention or planning involved in the process. Somewhere, the competition does influence the economy and serves as an invisible hand, which guides it as well.

However, the government and the corporations have minimal role in setting this economy. In addition, the central planners or the president doesn’t influence it either. It is purely based on individual interest and the consecutive prices.

upvote 1 downvote
Reply 

Brian gitonga

Brian gitonga

Brian gitonga
Brian gitonga

Answered Apr 01, 2021

The self-interests and the prices.

upvote downvote
Reply 

John Adney

John Adney

John Adney
John Adney

Answered Apr 27, 2017

A coparation can be people with self-interest and price.

upvote downvote
Reply 

John Smith

John Smith

John Smith
John Smith

Answered Dec 19, 2016

Self-interest and prices.
upvote downvote
Reply 

Advertisement
Advertisement
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader
Image Preview
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader
Image Preview
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader

Email Sent
We have sent an email to your address "" with instructions to reset your password.