3 Answers | Add Yours
Most of the countries today have a combination of market economy and command economy. There are no countries that pure market economy or pure command economy. Even countries like USA, leading in their support for market economy have many laws such as anti-monopoly laws that restrict free competition, which is essential for a pure market economy. Recent bailout package by US Government have further highlighted the presence and need for command economy like action of government in all economies.
However, we can say in that communistic countries like China follow predominantly command economy, whereas democratic countries - which includes most of the countries in the world today - follow predominantly the market economy pattern.
A market economy is a capitalist economic system. A capitalist economy is where business are owned by private owners with the goal of making profit. Countries that have a market economy are Mexico, United States, United Kingdom, Germany, and Canada . These countries have a market economy because the prices of goods and services are set by supply and demand .
A market economy is part of a capitalist system where the main aim is to make profit. Such economies, present in countries such as the US, the UK, are dependent on supply and demand.
However, as mentioned, there is no country that purely adopts a market economy.
We’ve answered 395,736 questions. We can answer yours, too.Ask a question