Characteristics of the Market System

Essay 4
List 9 Characteristics of the market system

In a market system economy, decision making is widely dispersed. Capitalism by design, fuels itself. There are 9 key features which act simultaneously to enable the continued renewal of the market system.
Through private property individuals and businesses are able to obtain, use and dispose of property resources as they see fit. It is the right to private property which allows one to produce goods or services without the fear of another seizing assets or resources that one owns. Through ownership comes a responsibility to maintain and improve upon property thus raising its value.
The freedom of enterprise and choice provides both sellers and buyers with fundamental protections in the marketplace. The freedom of enterprise allows that sellers are free to produce items of their choice with whichever resources they deem necessary. Freedom of choice enables a buyer to spend their money as they see fit as well as entering into work for which they are qualified.
The motivation of self-interest allows entrepreneurs to maximize profits and minimize losses. The act of self interest is one of give-and-take. In a market place, something of value is traded for another item with an equivalent value. It is self interest that gives direction and consistency to otherwise chaotic economies.
In order for economic competition to exist there must be at least two or more buyers and two or more sellers acting independently of each other in a product market or resource. The basis of competition states that buyers and sellers are free to make choices based on the pursuit of monetary gains. Competition destroys the ability for only one buyer or seller to dictate the pricing of a product or resource.
Through markets buyers and sellers are brought together in order to exchange goods. Decisions made in these markets help to determine further production and use of resources. Pricing places a value to the items which are...