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1. In the market economy supply and demand decide everything; its direct
opposite is the planned economy.
2. In a planned economy a government decides what is produced, how much
is produced and how and at what price it is sold.
3. In the world there is no perfect economic system. Market economies have
their strengths, but they also have drawbacks. In planned economies
governments can make sure that everyone can afford basic commodities.
4. Planned economies have problems with supply as it is difficult to calculate
how much to produce and how high a demand to expect. People have to
hoard different goods and shortages of goods become common.
5. In many countries privately-owned businesses exist alongside state-run
industries, which need protection from free market competition for their
development.
6. Deregulation leads to increased competition and the influence of market
forces.
7. Governments may put limits on free enterprise by banning trade in various
goods, preventing