Positive And Negative Aspects Of The Profit Motive In The Market Economy

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1.1 MARKET ECONOMIES

Key TermsCHAPTER 1 - THE ECONOMIC ENVIRONMENT

Scarcity
Market Economy capitalism profit competition Answer all questions in a complete paragraph with an opening sentence, 3 descriptive sentences and 1 closing sentence.

What is the major difference between a command economy and a market economy?
A command and market economy have many differences . A market economy allows the people to make all their own decisions, whereas a command economy forces the people to do what the government tells them to do. The market economy leaves the power to the people. Command economy leaves power to the government. The government makes all the decisions for the people. Market and command economies have many differences.
Which of the characteristics of a market economy do you believe is the most Important? Explain The most important characteristic of a market economy is profit. Profit
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There are positive and negative aspects of the profit motive in the market economy. Positive aspects are that you have free reign to make all your own choices. Also, you can make changes as you please if you are failing. To the negative side, If you are doing well you may have competition arise that may hurt your business
What are some things that a government can do to help assure that there is fair competition in the market place? There are many thing a government can do to assure that there is fair competition in the market place. First of all, they can make laws to stop any type of monopoly from happening. This will assure that no company will dominate a market and that the consumer has a choice. The government could also regulate the amount of shelf space a certain company could have. The will help to assure that there is fair competition in a certain store. Those are two ways that a government can assure fair competition in the market

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