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Principle #06

  • Richard W Swinney
  • Jul 10
  • 1 min read

Markets are usually a good way to organize economic actvity.


A market economy is when decisions of a central planner are respected by decisions of millions of firms and households.



Firms decide on hiring and manufacturing.


Households decide on employment with firms and how to spend their earned income.


Firms and Households interact where prices and self-interest guide their decisions.

 
 
 

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