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Market economy ⇐ ПредыдущаяСтр 5 из 5
The idea of a market economy started about 200 years ago, during the Industrial Revolution in 18th century England. This was the time when goods began to be made in factories with large machines powered by steam or water, instead of being made by hand. As individual inventors, industrialists, and entrepreneurs became wealthy, they also became more powerful in government. They were not satisfied with an economic system that was designed to benefit the nobles, kings, and landowners. They wanted an economic system that would benefit them. The market economy is the result of the millions of buying and selling decisions made by millions of individuals. No one runs the economy. It runs itself. Most modern-day economies are basically market economies. Traditionally, a market is a place where people buy and sell things. An example is a farmers market, where you can buy vegetables directly from farmers. But for economists, the word " market" means something slightly different. It refers to the actions of buying and selling, not just to the place where things are bought and sold. A market can exist even if the buyers and sellers never meet - for example, a mail-order business. A market is made up of people and actions. The people in a market are all the buyers and sellers of a product or service. The action on the market is buying and selling, that is, exchanging a product or service for money. A grocery store is a market. So is a shoe repair shop, a movie theater, or a gas station. So are kids selling cookies at a bake sale. In each of these markets, buyers exchange money for a product or service. Economic decisions in a pure market economy are made by buyers and sellers in the marketplace. Land and capital goods - factories, tools, etc. are privately owned. A market economy depends on a specialized industrialized society in which most individuals cannot meet their own material needs. People must work because they need money. People meet most of their material needs by buying goods and services with money. Buyers and sellers compete in the marketplace, each working for his or her own best interests.
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