Work done To make a higher profit the seller has to raise his price and reduce his production costs. Price In the market economy companies have to compete with each other for a share of the market. Today, in our lives and in the economy, money, coins, banknotes and credit cards play a very important role. Money / banknotes Credit Cards Coins In the traditional economy people hunted and gathered and had no property. Land was shared by the whole tribe. Division of labour first appeared here. Any economic system has its benefits and drawbacks. The biggest drawback of the traditional economy is the fact that people consume almost everything they produce. The market economy is not controlled by a government. Competition, which helps to control prices and quality, exists in a free market. A truly free market economy cannot exist as all governments control the economy to some extent by setting limits.
