How to understand the operating principles of a market economy

There are two points in understanding the principles of functioning of the market economy:

One, it is necessary to understand the process of trade and the formation of specialized production in it.

Two, how he is fixed into a market economy system.

The essence of trade is exchange, and the process is: from the self-sufficient mode of production, the transition to complementary and then competitive.

Complementarity means that not only do I use it myself, but I can exchange it as I feel like it, but note that he is not necessary, I can do without it.

Competitive is when everyone's needs will overlap, they want to exchange things can not get, it should think of seeking new. There is also the fact that everyone has it, so why would someone else choose mine, and others are not stupid.

Extended information:

I. Definition of market economy:

The so-called market economy, it should exist in the democratic system of the country, because the democratic system of the country does not have the right to intervene in the functioning of the market economy, so it is the way of the market operation is never subjected to the government's behavior of regulation, or else It is a false market economy, a modified market economy controlled by power, and an incomplete market economy controlled by vested interests.

Second, the essential characteristics of the market economy:

The essential characteristics of the market economy is to commodity production as the main driving force to promote the functioning of the social economy. Commodity is mainly used for the exchange of products, which contains the use value, but also contains the exchange value. The main purpose of commodity production is to obtain the exchange value of products by means of their use value. The government's behavior is to give full play to the regulatory role of the market mechanism to create conditions for the allocation of resources in the basic role. And the law of value is the basic law of commodity production and exchange of commodities, it fundamentally determines the operation of the market economy.

1, the market economy is open, the essence is to solve the problem of insufficient production, materials are not abundant.

2, but when the market economy is oversupplied, the practice of opening up the market is to stimulate people's evil desires, such as the use of people's laziness, greed, lust, thrill-seeking, rich people covet longevity and health, women covet youth, and the middle class is afraid of slipping.

3, financial capital is profit-oriented, will certainly be between risk and profit, choose profit, and pass the risk. So the ultimate market economy does not look good.