1. MARKET ECONOMY

2. PRIVATE PROPERTY Buyers and sellers are free to own and use private property.

3. GOVERNMENT INVOLVEMENT Buyers and sellers must be free to operate with minimal government intervention.

4. VOLUNTARY EXCHANGE Buyers and sellers act in their own self- interest when doing business together.

5. PROFIT Sellers are free to make as much profit as they can.

6. COMPETITION Sellers can use any method (legally) in order to get consumers to buy their products

7. CONSUMER SOVEREIGNTY Consumers are free to buy almost anything they want (legally). They vote with their dollars.

8. SPECIALIZATION Buyers and sellers are able to concentrate their efforts in areas where they have an advantage.

9. Impact of Market Economies ADVANTAGESDISADVANTAGES Economic Freedom – jobs, purchases No public goods – national defense Political FreedomNo welfare system Quicker response to change Unequal distribution of wealth ProfitUnequal opportunities