Korea have command economies.

FIGURE 1.9 A Market Economy Nothing says “market” more than The New York Stock Exchange. (Credit: work by

Erik Drost/Flickr Creative Commons, CC BY 2.0)

Although command economies have a very centralized structure for economic decisions, market economies

have a very decentralized structure. A market is an institution that brings together buyers and sellers of goods

or services, who may be either individuals or businesses. The New York Stock Exchange (Figure 1.9) is a prime

example of a market which brings buyers and sellers together. In a market economy, decision-making is

decentralized. Market economies are based on private enterprise: the private individuals or groups of private

individuals own and operate the means of production (resources and businesses). Businesses supply goods

and services based on demand. (In a command economy, by contrast, the government owns resources and
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