ABSTRACT
The market is the best-known economic institution. Today, markets exist increasingly without a physical location, through the internet. Think about eBay, electronic financial trading, and payments though apps, and online shops. This chapter focuses of analysis in economics because it is the only one of the three economic domains whose function is exclusively economic. A Social economic theory recognises the market as embedded in society, as shaped by social norms and reflecting social structures. Markets do have weaknesses i.e., market failures as inefficient or harmful outcomes of relatively competitive markets. It is discussed about market failures, indicating instances in which markets do not deliver what they are supposed an efficient allocation of resources, thereby generating well-being. The people need to consider the state or the community economy to allocate resources for a particular good or service.
