Pure market system

Gayathri nanda
119014
Pure market system
⊹ Market economic systems are based on the
concept of free markets. In other words, there is
very little government interference. The
government exercises little control over resources,
and it does not interfere with important segments of
the economy. Instead, regulation comes from the
people and the relationship between supply and
demand.The market economic system is mostly
theoretical. That is to say, a pure market system
doesn’t really exist because all economic systems
are subject to some kind of interference from a
central authority. 2
•Advantages
•Competition leads to efficiency because businesses that have
fewer costs are more competitive and make more money.
•Innovation is encouraged because it provides a competitive
edge and increases the chance for wealth.
•A large variety of goods and services are available as businesses
try to differentiate themselves in the market.

3
•Disadvantages
•only those people with resources may take part in the market
economy. There is of an income gap. People with the most resources
keep getting richer, while people with fewer resources get poorer.
•Environmental damage results with no government regulations
because it’s usually more expensive to produce environmentally
sound manner, which reduces profits.