Economics for Business and Management Essay Example | Topics and Well Written Essays - 2750 words - 2

Economics for Business and Management - Essay Example Market is a distributed system and can be effectively used in taking decisions. These people think so because they believe that the market based system can really attend to the features of new world system. The following issues are addressed by market system: The market system is responsible for supporting a dense set of social goals. Social goals of people also include taking resource allocation decisions by people. The participants take their investment decisions by quantifying the benefits perceived on each of the investment options. It is the market that provides its participants initiatives to take the decisions wisely. Thus market system is such that it helps the investors maximise the overall value and take efficient investment decision. The prevalence of a currency in the market helps the participants express value for the decision variables. The currency is used as a medium of exchange between the economies of the world. For example if the currency is open, it is generally assumed as a mean to acquire huge amount of goods and services. In such situation, it can be used as an incentive for resource providers to increase their services and vice versa. Thus currency can be used as a medium that allows market to admire those who provide valuable resources to the market. Market system is a platform that provides the investors the set where they can express their desires and holdings. Markets are broadly used to take complex resource allocation decisions. The examples of difficult decision situations can be the wireless spectrum auctions, energy market and airline landing slot exchanges. These are the situations of extreme intricacies where market system has worked effectively in resolving problems. The market system provides scope for those systems that run in parallel and help offer various access to unique resources such as many scientific tools. For example, a situation can be imagined where a physics researcher