▼Definition：This economic system relies on the market forces of demand and supply to allocate resources.Decisions on how resources are to be allocated are usually taken by millions of households and thousands of firms.市场经济就像Adam Smith所说过的"无形的手"，这无形的手就是市场上的需求与供应操纵着价格的上升与下降，例如说，有高需求的商品，多人竞争一个商品，那么就会自然而然推动价格的增长，反之亦然。The private sector decides on the fundamental questions of the 3 basic economic problems.
▼Advantages of the market system:
·Efficiency：Competition helps to ensure that private individuals and firms pay attention to what consumers want.This helps to stimulate innovation,there by making market economies more responsive and dynamic.
在市场经济的形式下生产者因为专注于消费者的喜好而生产消费者喜欢的商品，所以说不同于计划经济中央政府不论顾客喜好商品千篇一律，市场经济中的核心是消费者。所以生产者生产的商品都是与消费者的需求相吻合，所以说这样的生产相对计划经济来说就更高效。
·Freedom of choice:Individuals can choose which goods and services to purchase and which career to pursue,without being restricted by government regulations.
继上一条之后，没有政府干预，不同消费者有不同喜好，所以市场内就会生产给类不同的商品供顾客选择，消费者可以自由选择他们所需要的和喜欢的商品和服务。
·Competition creates innovation and creativity:If they wanted to survive in the market,firms have to be innovative to create better qualified goods and services to attract the consumers in order to persuade them to buy your goods or else they would lose their profit and could not earn enough revenue to keep running the firm.
在市场经济中存在着大大小小的企业和各类各样的商品与服务，所以说在售卖商品的过程中产生了激烈的竞争。
·Incentives:The profit motive for firms and the possibility for individuals to earn unlimited wealth creates incentives to work hard.This helps to boost economic growth and living standards in the country.
因为没有政府牵制，所有利润都会回到商家自己的口袋里,这样的话高利润的回报就会鼓励生产者去更努力工作，提高销售量以求赚取更高的利润。
·Social Hardships:With the absence of government control,the supply of public goods like street light and public toilets could not be provided because of no-profit return.
没有了政府管制，因为公共设施没有利润回报（不从消费者身上收取费用）所以私有企业并不会提供这些，那么穷人可能就会很难维持他们的生活。
·Distribution of income inequalities:In the market system,the rich have far more choice and economic freedom.Production is taken place to meet the needs and wants to those who can afford it.
在市场经济的形势下，因为利润的驱使生产者大多都生产利润高的商品与服务。因为承担得起，所以说有钱的消费者就比穷人有更多的选择。必需品一般都是低收入低利润，所以生产者一般不会去生产这些，但是这些都是穷人所需要的，但是他们没有能力承担高昂的价格，他们的需求就被忽视了。长此以往社会上会形成严重的贫富差距。
·Wasteful competition:Competitive pressures can mean that firms use up unnecessary resources to gain competitive advantages over their rivals,such as excess packaging and advertising clutter.Consumers might be exploited by marketing tactics such as pester power.The lack of government involvement could also mean that products are less safe for consumers.
是场内激烈的竞争意味着生产者需要制造出更有竞争力的商品，但是在这个制造的过程中会，淘汰很多东西经过筛选才能有成品，所以说在这个过程中会浪费很多资源。例如说广告，商家在推销自己产品过程中会推广代言广告（很多都是不必要的）以求吸引消费者注意力。广告对于儿童尤其有影响力(pester power).
·Environmental issues:There are negative consequences of economic prosperity under the marketsystem,such as resource depletion,pollution and climate change.
没有政府管制，私有企业为了赚钱可以利用一切资源，甚至可以破坏环境，就像现在因为工业生产而造成的雾霾等等。
怎么样，这些重要的IGCSE经济学知识点大家掌握的如何呢？知识点概念的掌握是IGCSE经济学的基础，同学们一定要做好考前的查漏补缺工作，不要因为基础的薄弱导致不必要的失分哦！
