Market mechanism, Financial Management

Market mechanism:

Market mechanism is a term from economics denoting to the use of money exchanged by sellers and buyers with an open and understood system of time and value tradeoffs to give the best distribution of services and goods. The use of the market mechanism imply in a free market; there will be controlled markets or captive which seek to use demand and supply, or some other form of charging for scarcity, both in social situations and in engineering. This is a major term when it comes to marketing in economics. In this we have three kinds of economy free market economy, command or mixed economy and planned economy.In free market economy all the resources are provided by private sector (Individuals, group of individuals and households), in planned economy all the resources are provided by the public sector (local and central govt) and in mixed economy the resources are taken by both private and public sector. Resources are given according to the forces of demand and supply and this is called as market mechanism.

Posted Date: 2/14/2013 12:46:14 AM | Location : United States







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