How a Market Economy Work? Advantages of a Market Economy

resource allocation.

Each country contains free-market elements, however, there is no such thing as a completely pure free-market economy.

A market economy is an economic system in which individuals, rather than the state, own most of the resources.

Resources in a market economy include land, labor, and capital.

In a command economy, a central government or single ruler decides how many goods should be produced and services provided, and sets their prices.

Most countries, including the U.S., have economies with elements of both market and command economies.

Supporters of market economies argue that these economies have led to unprecedented development and growth.

Critics say market economies can disenfranchise vulnerable groups and lead to inequality