ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -One of the most important characteristics of a market economy, also called a free enterprise economy, is the role of a limited government. Most economic decisions are made by buyers and sellers, not the government.

Detailed explanation-2: -Private property, freedom, self-interest, competition, minimum government intervention are the characteristics of a market economy.

Detailed explanation-3: -Countries like the United States, Japan, and the UK are examples of market economies. In these market economy countries, individuals own most of the resources. Their economies are not controlled or regulated by a central authority. Instead, the forces of demand and supply influence the core market activities.

Detailed explanation-4: -Brief explanations are given for these characteristics of the market system: private property, freedom of enterprise and choice, the role of self-interest, competition, markets and prices, the reliance on technology and capital goods, specialization, use of money, and the active, but limited role of government.