Representing the Modern Market Economy - Coursework Example

The paper "Representing the Modern Market Economy" is an outstanding example of a Macro & Microeconomics coursework. In the economics study, it is about individuals who live in a household. The household consists of family and connections of friendships. The groups of people work together under one family roof. In the illustration below, it displays the household supply from the front end while the demand is shown on the rear end.

The household is separated into two different sections, the demand and the supply. Likewise, a firm is distinguished. Ideally, The Modern Market Economy has gone through an evolution in the past few years and it has gained a lot of similarities between the different nations. The lawmakers make the political process of taxation and a central bank to keep control of the monies in the public sector. A budget process is included so that there is a good expenditure and the public money is regulated. In this regard, the government includes branches of semi-governmental structures and governmental bodies. The private sector likewise has structures in the form of firms and segments that supply the products to the market. In this case, the price is the main factor when it comes to the demand for products and services. In an ordinary scenario, the household is the one that supplies the labor to the firms and this influences the market factors with more or fewer regulations. The payment mechanisms are solely determined by the demand and supply of various experiences and skills. The interaction of markets and dependence on each other influences the demand and supply.

In every economy, there are various sets of economic structures and financial variables that are taken into consideration by the motive of profit gains and the need to achieve a certain growth level. The use of borrowed funds or capital assists in the growth of assets for domestic and international markets. In microeconomics, there are various modes of representing the demand and supply chain. In this paper, the iconography is used to show this mode and it is visually presented for the modern market economy2. In a normal situation, the loss and profit margins are displayed at the bottom. The profit can be linked with the balance sheet at the top to introduce the assets and liabilities.

The Economic Problem

The market has so many needs that may not be achieved by the supply efficiently considering the unlimited needs and wants of individuals. There has been a challenge of the approaches to be used in the allocation of goods and services to firms and households in various economies.