Content and main features of a market economy Plan: introduction

Figure 1. Features of a market economy²
The buyer wants to buy the product at a certain price. Vendors are those who bring goods to market and offer them to buyers at a certain price.
Households are composed, firstly, of ordinary consumers (e.g., family or individual) and, secondly, of resource owners. As buyers, they receive goods and services from the market, and as sellers, they sell labor, land, and money to the market. The labor force is sold in the labor market, the land in the real estate market, and the money in the financial market, collectively called the resource market. Households export goods to the resource market and earn money from there. They use the money to buy goods at the market. Commodity firms, farms, or individual producers. Manufacturers also operate in two markets. They buy labor, raw materials, land, credit and so on from the resource market. At the same time, they bring goods to the market and make money from there.
You need money to buy goods from the market, and to do that you need to sell something. This means that the buyer must also act as a seller. When the housewife goes shopping, she goes out with money and returns home with the goods. It's as if he didn't sell anything. True, he did not sell the goods at that time, but the money in his wallet is the price of the goods previously sold. For example, his family members sold their labor to a company or the state and received a salary. The lady brings this money to the market. If the family has deposited money in the bank, they will be paid, and if they rent a house, they will be paid rent. For the housewife, the sale was before and the purchase was after. This means that trades in the market can take place at different times.
State participation in the market is different. If it is a state-owned enterprise, it also sells goods. However, most government agencies and courts sell their services in the market. These are taxes that are charged for the service. With the proceeds, the state buys resources and goods from the market. The advantage of the market is that it establishes economic ties through trade.
Just as the economy itself has historically existed in different forms, the position of buyers and sellers in the market is also changing. The current market is a regulated market, in which work for a spontaneous, uncertain buyer is rare, and trade relations between customers are important and will continue for a long time. Risky delivery of goods to the market is also rare. Before launching a product, the market is carefully studied to determine what and how much to supply. But there is still some uncertainty in the market. Because the buyer and the seller are independent and decide what to do, they have different goals and ideas.
A free market is one in which there are many buyers and sellers, none of whom has a monopoly position, who can quickly find each other, competition is completely dominant, prices are formed on the basis of free trade the market is understood.
As you can see from the description. in a free market, the buyer-seller relationship is based on economic pressure, without any pressure. An example of a free market is agriculture in Uzbekistan products market. In this market, millions of people are buyers and sellers are farms and thousands of farms. It is not determined from above who will sell what, from whom, and at what price, the market will decide.
In a free market, the choice of buyers and sellers leads to their selection and the creation of a monopoly market by the strongest of them.
Today, the market economy is specific to the nomadic countries of the world, and it operates and develops in different countries at different levels and with different characteristics. The mechanism of action of this economy has been formed over the centuries, has taken on a civilized form in modern times, and has become the dominant economic system in many countries. The stability of this economy is explained by the fact that during the long-term economic evolution the basic classical rules of its operation have been preserved.
As we said in the previous topic, the emergence of private property and the division of social labor are general conditions for the origin and existence of a market economy. The division of private property and labor requires a commodity form of the social economy, and the existence of commodity production implies a market-specific nature of money circulation, exchange, distribution, and consumption. The development of commodity production is the basis for the development of a market economy.
One of the important conditions for the effective functioning of a market economy is the independence of production, freedom of entrepreneurship, free exchange of resources. The more independent the manufacturer, the better the market. Free exchange allows the producer to form free prices, which show the relatively efficient direction of their activities.
A market economy is an economic system that is organized and managed on the basis of the laws of production, exchange and circulation of goods. Such an economy is based on a free commodity-money relationship, which is based on the movement of goods and money in various forms, denying economic monopoly.
Typically, all major market entities are divided into three groups: households, enterprises (business sector), and the state.
Households are the main structural unit of the economy operating in the consumer sector. Households consume goods and services created in the areas of material production and services. In a market economy, households are the owners and suppliers of the factors of production. Proceeds from the sale of economic resources are used to meet personal needs.
The business sector is the primary link in the economy for profit. It requires the use of its own capital or borrowed capital to run a business, the income from which is used to expand production activities. Entrepreneurs supply goods and services to the commodity economy.
The state is represented by various budgetary organizations and institutions that do not aim to make a profit, but mainly to regulate the economy.
Also, some textbooks and manuals highlight banks as another separate, independent entity of the market economy.
A bank is a financial and credit institution that regulates the movement of money supply necessary for the normal functioning of the economy.
Thus, the above-mentioned interactions and relationships of market economy entities can be represented by the following diagram (Figure 2).