The Development History of the Market Economy System (I)

The market economy system is based on a highly developed commodity economy. Under the market economy system, resource allocation is constrained by consumer sovereignty. What production depends on the needs of consumers, how much production depends on the demand level of consumers’ ability to pay; economic decision-making is decentralized, as the main body of decision-making The economic and legal status of consumers and producers is equal, there is no personal dependency and super economic coercive relationship; information is transmitted according to the horizontal channel between the buyer and the seller. The economic power comes from the pursuit of material interests. The scattered decision-making bodies compete with each other in seeking their own interests. The coordination of decision-making is mainly carried out through the market afterwards. The entire resource allocation process is based on market mechanisms.galvanized steel tube

The market economic system is the specific institutional arrangement or operation mode of market operation. The market economy refers to the economy in which the market plays a fundamental role in regulating resource allocation. The market economy can also be said to be a way of arranging economic resources based on the role of market mechanisms. The market economy is relatively the same as the planned economy, and the market economic system is relatively the same as the planned economic system. Usually the market economy is also called the market economy system.

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