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Characteristics of the Market System As I read through the different characteristics,

Characteristics of the Market System

 

As I read through the different characteristics, self-interest caught

my

eye. The book describes it as the motivating force of the various

economic

units as they express their free choices. Self-interest simply means

each

economic unit tries to achieve its own particular goal, which usually

requires delivering something of value to others. It also listed

several

relatable examples to further clarify its definition. For example,

entrepreneurs try to maximize profit or minimize loss. Workers try to

maximize their utility (satisfaction) by finding jobs which offer the

best

combination of wages, hours, fringe benefits, and working conditions.

Consumers try to obtain the products they want at the lowest possible

price

and apportion their expenditures to maximize their utility. Is self

interest the same thing as selfishness?

 

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