CHAPTER 1

The Market Economy

A SWOT Analysis

To better understand the basis and characteristics of the economic system in which corporate managers and small-business owners operate, this chapter will provide you, the business decision makers, with information to understand, predict, and strategize to solve problems as they arise, especially during the boom-bust cycle.

The United States has a mixed economy, as do many nations around the world in contrast to a “pure” market economy, which is also known as free enterprise, the free market, laissez-faire, or capitalism. There are, however, several variants of a mixed economy, different degrees of government intervention coupled with relatively free markets. There are mixed economies where governments ...

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