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Incentive to work hard and be successful as there Is a major fear of economic failure so Is a major Incentive for people to take Jobs. In comparison to a planned market economy where black markets are a common Issue for the government as people do not have a choice In how they spend their money so they have so result to Illegally trading goods. However In a free market economy choice Is not available to all, people on high Incomes have significantly more choice than people on low Incomes. Meaning there is a greater risk of people on low incomes to die of starvation or disease.
Nevertheless this does mean that people will thrive to do better in education and ultimately get a better education so they are not in the minority of people who have little choice or no choice. Yet there is help for the people who have little or no choice in the form of charities, charities are a good mechanism to help support those who have little or no choice in the economic system through no fault of their own due to disability or being orphaned. Although the worry with charity is that people will not donate enough resources through choice to support everyone who needs it.
A second advantage to the free market economic system is that firms have a strong incentive to innovate and produce high quality goods. This is because if they don’t they will be driven out of business by more efficient firms. It also means that there will be competition between producers so the consumer will be able to get the best product possible for what they can afford. Conversely markets can be dominated by a few large producers; this can lead to them manipulating the market through advertising causing the consumers to be exploited.
In free market economic there is he choice for individuals to reduce economic risk through the use of Insurance. For example health insurance so that if you have an accident you will not have any huge medical bills to pay, or life insurance to protect family If something was to happen to a member of the family. This is good as people will be Independent and not rely on the government and everyone will have a role In society Instead of some people working extremely hard to pay more taxes that other people will live off and not doing anything In return. On the other hand only a percentage of the population have the
Income or the foresight to Insure themselves sufficiently and In a free market, It Is possible for people to die through the lack of medical attention, or a family to become poor and starve due to the mall member that brings In money dying. In conclusion I would not agree with the statement “More advantages than disadvantages” being an accurate statement of the free market economic system as for every advantage to the system there is an equally important disadvantage. Free market essay By char_swell market is that consumers are faced with a wide range of choice, price and quality. Centime to work hard and be successful as there is a major fear of economic failure so is a major incentive for people to take Jobs. In comparison to a planned market economy where black markets are a common issue for the government as people do not have a choice in how they spend their money so they have so result to illegally trading goods. However in a free market economy choice is not available to all, people on high incomes have significantly more choice than people on low incomes. Incentive to innovate and produce high quality goods.
This is because if they don’t he choice for individuals to reduce economic risk through the use of insurance. For medical bills to pay, or life insurance to protect family if something was to happen to a member of the family. This is good as people will be independent and not rely on the government and everyone will have a role in society instead of some people anything in return. On the other hand only a percentage of the population have the income or the foresight to insure themselves sufficiently and in a free market, it is poor and starve due to the main member that brings in money dying. In conclusion I