in a paragraph, describe the market economic system and compare it to at least one other type of
economic system. Use at least three vocabulary words from page 5 in your answer.
Vocabulary: command economy traditional economy market economy entrepreneurship bartering
A market economic system is characterized by the presence of private ownership and competition. In this type of system, individual consumers and producers play a crucial role in determining the allocation of resources through their choices in the market. The decision-making power is mainly in the hands of individuals, who are guided by profit motives. Entrepreneurs, individuals who take risks to establish and manage businesses, are crucial in driving innovation and economic growth in a market economy. Unlike a command economy, where the government controls the production and distribution of goods and services, a market economy allows for individuals to freely engage in economic activities based on their own preferences and needs. In contrast to a traditional economy that relies on customary practices and bartering, a market economic system uses a medium of exchange, such as money, to facilitate trade and transactions.
