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) Cite this document
Summary
Free Market Economy versus Mixed Economy University: Tutor Name: Free Market Economy versus Mixed Economy A free market economy involves a very limited role for the government, whereas the mixed economy consists of a mixture of both the free market economy and the command economy, where government virtually controls and regulates the economy (Dwivedi, 2002)…
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... they are free to decide on what to produce and purchase in the market respectively. In the free market economy, also known as the laissez-faire economy, the producers decide on what to produce as per the market demand and prices. In the latter, the government plays a very limited role in terms of deciding what is to be produced. In this case, the government has little or no command to direct on what goods and/or services are to be produced. However, in a command economy, the government has high command and control over dictating what types of goods and services are to be produced for the market, and the amounts to be produced. On the other hand, the mixed economy is likely to be characterised by conflict since the economy is controlled by both the market forces and the government in terms of determining the types of goods and services to be produced. The mixed market economy is based on decision making by individuals and businesses for the private sector, and government decisions and regulation for the public sector (Anderton, 2012). Free market economies are likely to be more effective due to the dynamics in the market decision making, i.e. the consumers dictate what is to be produced in terms of consumption demand in goods and services. The producers will choose the best cost-effective method of production for higher profit, and firms produce goods and services in terms of consumer demands and tastes, i.e. they produce goods and services which consumers are willing and able to purchase. The free market is effective due to the existence of healthy competition that allows for opportunities for profit making for firms and businesses, and at the same time ensures consumer satisfaction. The free market responds quickly to consumer demands, where goods and services are produced and delivered with due regard to demand. The mixed economy is likely to be characterised by conflict due to override of authority, by either the government or individuals and businesses, in the determination of the allocation of goods and services. In the mixed economy, the government influences the market through taxation rates and setting laws to regulate the market economy. Additionally, the government provides basic services for communities, such as healthcare, education and policing, and hence hinders the investment in these sectors by individuals in the private sector. However, the government plays a critical role in regulating business and market standards for the facilitation of healthy competition in the private sector and consumer satisfaction. The government is also effective in controlling the consumption of harmful goods through illegality declaration or high taxing (Gillespie, 2012). In the mixed economy, the government easily influences the aggregate market demand in its attempts to manipulate its budget deficits or surplus, known as the fiscal policy, for the realisation of economic goals (Rodrik, 2011). The free market economy is more effective, for it creates opportunities for innovation and welfare improvement in both the individual and public interests, where individuals are allowed to make independent decisions that affect their own wellbeing (Rodrik, 2011). Individual consumers have the capability to make institutional arrangements for the enhancement of suitable interaction ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“To what extent do you agree with free market economies being more Essay - 2”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1495399-to-what-extent-do-you-agree-with-free-market
(To What Extent Do You Agree With Free Market Economies Being More Essay - 2)
https://studentshare.org/macro-microeconomics/1495399-to-what-extent-do-you-agree-with-free-market.
“To What Extent Do You Agree With Free Market Economies Being More Essay - 2”, n.d. https://studentshare.org/macro-microeconomics/1495399-to-what-extent-do-you-agree-with-free-market.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Cause and Effect of Stress on Students in High School or College

The researcher states that stress level is higher in college students compared to high school students. The high school students experience stress because of the overwhelming physical and psychological changes they experience in their adolescent stage. College students, on the other hand, stress because of life realities, especially the shift from dependence to self-dependence.

3 Pages(750 words)Essay
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
These two parties decide what to produce and what to purchase. A free market economy is based on the forces of demand and supply with little or minimum government intervention in the form of subsidies, taxes and regulation (Kates, 2011:34). The means of labour are privately owned and this enables parties to according to their own self-interests.
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
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