why is market ecomony used??

Answer 1

The theory is that it will naturally produce the optimal and efficient amounts of each good and service. It does so for consumers choices in relation to all goods they can buy, and suppliers choices in relation to all the goods they can supply.

But it is a Utopian view. There are problems in there and interference anyway. But all the economic models have those, it is one of the better of the pure models.

Answer 2

Because it is the most efficient method of allocating resources to the most valued uses. It is about serving your fellow man. You can only get paid for providing goods and services that are desired by your fellow humans. So you can only get what you want by making sure others get what they want. No other system works that way.

Answer 3

Because it works better than the demand economies that were employed by Communist countries. In market economies the consumer determines what is manufactured and in what quantities by his demand for those products. In demand economies the government determines what people should want and in what quantities. People know what they want.