Sentences with phrase «allocated in a market economy»

Scarce goods and services are allocated in a market economy through the influence of prices on production and consumption decisions.

Not exact matches

National economies vary in the extent to which they rely on government directives (central planning) and signals from private markets (prices) to allocate scarce goods, services, and productive resources.

There are essential differences between a market economy, in which allocations result from individuals making decisions as buyers and sellers, and a command economy, in which resources are allocated according to central authority.