Microeconomics Basics

There are different types of economies in today's world. A pure market economy (also known as laissez-faire capitalism) is an economy in which individual households and firms determine the allocation of resources and the government plays an extremely limited role, primarily in enforcing property rights through a legal system and providing for a common defense. A centrally planned economy (also known as a command economy) is one in which a single individual or small group of individuals dete...