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Market Economy

Market or Free economy is characterized by a system in which the allocation of resources is determined by supply and demand in the market. Both the production and distribution is determined by the market forces to ensure competition and efficiency .It has an effect on the traditional families as a result of monetisation and market economy the different members of the family contribute to the family income and increased the avenues for social mobility. Their is rapid growth of industries in which the employee-employer relations are based on contractual relations. Work has become the commodity which is exchanged for wages. Expansion of markets has increased the volume of trade and commerce facilitating the integration of the country. Growth of economy leads to occupational diversification and increasing specialization of occupations which in turn has created a demand for educational institutions to provide specialized training. Due to industrialization and expansion of market economy in urban areas leads to consumption oriented life-style. Market economy governed by supply and demand is inherently unstable. This leads to anomie which is characteristic of urban life. Inflation also poses constant threat to instability in the urban markets.