We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

To what extent do you agree with free market economies being more effective than a mixed economy - Essay Example

Comments (0)
Summary
Free Market Economy versus Mixed Market Economy Definition A market economy or a free market economy is defined as a social institution where the main economic problem of the commodities to produce, for whom to produce is solved by the firms and consumers…
Download full paper
GRAB THE BEST PAPER
To what extent do you agree with free market economies being more effective than a mixed economy
Read TextPreview

Extract of sample
To what extent do you agree with free market economies being more effective than a mixed economy

Download file to see previous pages... All individuals act on their behalf; however the actions are aimed at satisfying consumer needs. The free market economy is controlled by a price mechanism where the prices of goods and services are not determined by the government (Kates, 2011:34). They are determined by the interchange between the forces of demand and supply whereby price acts as an indicator for the suppliers to decrease or increase supply so as to reach an equilibrium between the forces of demand and supply and the best allocation of resources. Income and resources are distributed and allocated efficiently by using the price mechanism. A free market economy is an economic system that is not influenced by the government or other political forces (Kates, 2011:34). The rate of growth in such an economy relies on the level of consumer activity that is connected to the consumers’ purchases. This means that economic growth is possible in an economy that is not controlled by the government. Free market economies are closely linked with capitalism in the modern-day usage and popular culture. Cooperative members, market socialists and supporters of profit sharing support free markets. Why is a free market economy better than mixed economy? A free market economy is better than a mixed economy in various ways. ...
Secondly, free market economies are flexible and therefore adjust freely to change. If there is a change in demand of a certain good or service in the market, companies can increase their production to meet the increased demand in the market. Conversely, in a mixed market economy, the government regulates the quantity that is produced and supplied in the market. There is increased competition among the major producers in the company. This mounts increasing pressure on the producers to improve their products and lower their prices so as to attract a higher number of consumers (Sirico, 2012:14). On the contrary, in a mixed economy a central authority such as the state or the government regulates the quality of goods and services. This means that the competition in the prices of goods and services is minimal hence consumers do not benefit in the long-run. In addition, increased competition among the producers encourages production using the latest technology (Kates, 2011:34). In other words, increased competition in the market leads to increased innovation that positively contributes to productivity. A free market economy encourages rational self-interest. People have more freedom to undertake actions that they want and to buy and sell what they want. Consumers have more freedom to produce and sell what they want with minimal government interference. However, in a mixed economy, the government sets the standards to be followed by the producers and consumers. Finally, the consumers determine the success or failure of a products or service in the organisation (Sirico, 2012:14). This means that the consumers have more power to drive the prices of goods and the quantity produced. On the other hand, in a mixed economy, a central planning ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
To what extent do you agree with free market economies being more effective than a mixed economy
Infact most economies are mixed, with different levels of government intervention (Alan, 2012). Mixed economies are composed of private businesses that operate a large share of the market. The government comes in given areas of economy, for instance public spending and price regulation.
4 Pages(1000 words)Essay
Comparison of Free Market Economy and Mixed Economy Systems
The essay gives detailed information about advantages and disadvantages of free market economy and mixed economy systems, through the use of the real-world examples. A mixed economy permits parallel operation of private and public entities. In nations that have a free market system, financial freedom promotes high living standards and high wages.
4 Pages(1000 words)Essay
Comparative Analysis of Free Market Economy and Mixed Economy
This essay primarily focuses on the identification of the distinctive features of two most common economic system in the world. Free market is an economic system that is determined by the price mechanism. A mixed economy is a combination of a free market and planned economies. Free market economy is deemed more effective compared to a mixed type.
4 Pages(1000 words)Essay
Effectiveness of the Free Market Economies over Mixed Economies
The main focus of the essay is on the increased effectiveness of the free market system, compared with mixed type of economy. Among all the types of the economic system, free market economy is proved historically to be the most productive and efficient. In free market economy the government has no hand in the market.
4 Pages(1000 words)Essay
To what extent do you agree with free market economies being more effective than a mixed economy
The free market economy is characterised by private ownership of property and/or resources, means of production, consumer sovereignty, competition and independent choices. The free market economy is more effective than the mixed economy due to the fact that investors or businesses and the consumers have control over the market, i.e.
4 Pages(1000 words)Essay
Fair trade has more benefits for suppliers than free trade. To what extent do you agree with this statement
The fair trade mark is being frequently used by organisations in order to provide a guarantee about their products to the customers. The fair trade market is said to be growing in the present times. However, there are various controversies relating to fair trade market. The
5 Pages(1250 words)Essay
To what extent do you agree with free market economies being more effective than a mixed economy
On this note, business deals under a free market economy are always based on mutual consent and agreement. In as much as a free
4 Pages(1000 words)Essay
I need an abstract for this and conclusion
There shall also be a problem statement that basically indicates the specific research question that guided the research process, Moreover, the report
1 Pages(250 words)Essay
To what extent do you agree with free market economics being more effective than a mixed economy
In the developed world, there are arguments both for and against certain economic systems. In United States, the two competing economic systems are the free markets systems and the mixed markets economy. The free markets economy is an economic system
4 Pages(1000 words)Essay
To what extent do you agree with free market economics being more effective than a mixed economy in two different countries
To begin with, a free market economic system is one that answers all economic questions regarding what to produce, how to produce these items and when to produce them. It allows the forces of demand and supply to interact freely to determine a region’s economic
5 Pages(1250 words)Essay
Let us find you another Essay on topic To what extent do you agree with free market economies being more effective than a mixed economy for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us