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Akansha Mba

The document discusses the main characteristics of market economies. It states that in market economies, individuals pursue self-interest by buying and selling goods based on incentives like price. Prices are determined in open markets where suppliers compete. It also outlines the main types of resources in an economy: natural resources (land), human resources (labor), capital (man-made tools and machinery), and entrepreneurship (risk-taking and innovation).

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Giriraj Godani
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34 views

Akansha Mba

The document discusses the main characteristics of market economies. It states that in market economies, individuals pursue self-interest by buying and selling goods based on incentives like price. Prices are determined in open markets where suppliers compete. It also outlines the main types of resources in an economy: natural resources (land), human resources (labor), capital (man-made tools and machinery), and entrepreneurship (risk-taking and innovation).

Uploaded by

Giriraj Godani
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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LORD KRISHNA COLLEGE OF TECHNOLOGY, INDORE

Submitted By
Ashish Soni Akansha Dubey

Main Characteristics of Market Economies

Individuals pursue their own self-interest buying and selling what seems best for themselves and their families. People respond to incentives other things being equal ,sellers seek high price while buyers seek low prices. Prices are set in open markets in which suppliers compete to sell to potential buyers All of these activities are governed by a legal from work largely created and administered by the state. People earn their incomes by selling their services to those who wish to use them their labor services/ or by selling things they have produced.

KINDS OF RESOURCES
An economy resources can be divided into four main categories: All those gifts of nature ,such as land, forests ,minerals etc. commonly called Natural Resource and called by economists LAND, for short

ALL HUMAN RESOURCE, MENTAL AND PHYSICAL, BOTH INHERITED, AND ACQUIRED, WHICH ECONOMISTS CALL LABOR. All those man-made aids to further production, such as tools, machinery and factories, that are used in the process of making other goods and services rather than consumed for their own sake. Economists call this CAPITAL.

Those who take risks by introducing new products and new ways of making old products, developing new businesses and forms of employment .they are called entrepreneurs or innovators, and the resources they provided is ENTREPRENEURSHIP.

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