The central coordinating mechanism in a market economy.
Explanation of Solution
A market economy is a system in which decisions related to the economy and the pricing of products and services are directed by the exchanges that take place between country’s citizens and businesses. The central coordinating mechanism in a market economy is the
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Chapter 3 Solutions
Microeconomics
- The market economy does have the advantage of increased efficiency, productivity, and innovation. However, what are some of the disadvantages of a market economy?arrow_forwardWhy is the law of demand and the law of supply a useful economic model?arrow_forwardWhat are the types of economic systems? How will you differentiate Command from a Market economy?arrow_forward
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- Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co