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Part A
Question 1
The market system could be illustrated as the place where the price is determined by unregulated supply and demand. In the market system the greater part of the production, distribution and exchange of goods are controlled by private owned corporations and individuals. The markets alone are normally used to allocate scarce resources e.g. land, labour and capital. But the pricing of the goods are chosen solely by the country’s citizens and businesses, without the help of the government. To best understand the market system it may be best to compare it to other market systems, for example, the command and market economy systems.
The way the command economy system works is that, the government controls the production, distribution and the exchange of goods and services. It also controls the resources of land, labour, capital and the pricing of the goods. In this type of system extensive bureaucracy is needed to allocate resources. If the government makes a wrong......

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Approximate Word Count: 3799
Approximate Pages: 16 (250 words per double-spaced page)

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