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A free market economy can be argued to be the best type of economy because it encourages private ownership of business. In other words, people make money for themselves, and whatever they make is theirs. There is lots of incentive to work because the more you work, the more you get in return of that work. Socialist command market systems have no incentive for working hard because their wealth is evenly distributed amongst the entire community. For example, a garbage man in China with two children would earn more profit in the long run than a doctor without any children. The doctor has no incentive to work hard and be good at his job because he doesn't reap his work's profits. This is why the free market system is thought to be the best type of economy.
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Why is market economy the best economy?
A free market economy can be argued to be the best type of economy because it encourages private ownership of business. In other words, people make money for themselves, and whatever they make is theirs. There is lots of incentive to work because the more you work, the more you get in return of that work. Socialist command market systems have no incentive for working hard because their wealth is evenly distributed amongst the entire community. For example, a garbage man in China with two children would earn more profit in the long run than a doctor without any children. The doctor has no incentive to work hard and be good at his job because he doesn't reap his work's profits. This is why the free market system is thought to be the best type of economy.
What are the pros of a free-market economy?
In a free-market economy hard work and personal initiative equal success. All businesses exist to make a profit and competition allows them to compete and provide customers with a selection, and the ability to get the best price for their product. In the free market system poorly made or expensive products will be rejected from the marketplace by the consumers.
Is a free-market economy the same as a market economy?
No. Both have a similarity in a basis in the marketplace. However, a free market is a special case in which there are no external controls on free economic action. Market economies may or may not have such influences, but are only contingent on some basis in the marketplace.For example, the United States is a market economy. But with the degree of government intervention, it is not a free market economy. The closest in the world today is Hong Kong, but a pure free market is as hard to find as pure communism.To expound further, this is a difficult question, as the common meanings of "free market", "market economy", and "true free market" are not what an Economist would define. That is, there is a disjoint between common usage and technical definition.From an Economist's standpoint, and Market Economy is any one which uses the principles of supply/demand and open trade to transact economic activity. As such, the world has come to the point where all countries use a Market Economy.However, inside the category of Market Economy are a large variation in the level of three factors: government regulation, government ownership of industry/infrastructure, and government social programs. An Economist would stay that having more than a very minimal level in each category would move that economy into the Mixed Market Economy category. As current governments have high levels of regulation, some minimal level of government ownership of industry/infrastructure, and at least moderate levels of social programs, it's hard to classify any current nation's economy as anything but a MME. That is, from the Economist's perspective, there are no Free Market economies, let alone True Free Market economies (except in places where there is no functioning government at all, such a places undergoing civil war or in a state of anarchy).To be clear, from an Economist's standpoint, a True Free Market Economy is a form of Market Economy where the government provides only two functions: a single legal common currency, and adjudication of contracts. A Free Market Economy is one where the government would add some lower level of regulation on allowable economic activity, such as pollution controls, or prohibition on certain abusive economic activities (i.e. market manipulation or abuse of monopoly status), but does not engage in either ownership of industry/infrastructure or any government-sponsored wealth transfer (e.g. social programs).So, really, we are splitting hairs. Given that all countries are running an MME (according to an Economist), when ordinary people say "true free market" or "free market", what they are generally referring to is those countries with lower levels of regulation/ownership/social welfare than other countries. In common usage, these terms are relative, not absolute.This can easily be answered without large paragraphs. A free-market economy is called Capitalism. A market economy... It isn't really a term. It is the Same as a Free-market economy. The people closest to this would be the Hong Kongese but even yet, they are what the U.S is: a Mixed Market Economy. Period.
What are the advantages of a free market economy?
In a free-market economy hard work and personal initiative equal success. All businesses exist to make a profit and competition allows them to compete and provide customers with a selection, and the ability to get the best price for their product. In the free market system poorly made or expensive products will be rejected from the marketplace by the consumers.
What are the pros and cons of command economy?
Pros A sense of community within the economy Income equality Potential to get things done very quickly Cons Little innovation No competition within the economy Firms will have a hard time competition in the world market The quality of the good are detrimental Inefficient allocation of resources Lack of Freedom Lack of personal gain Generally, there is a lower standard of living when compared to a free market economy
What is a political system that tends to eliminate the free market economy?
Communism tends to eliminate free market economy in that under communism there is no incentive from either end to produce more or compete with others, as all citizens receive the same profits as one another independent of how much they produce or how hard they work.
Why is market economy the best economy?
A free market economy can be argued to be the best type of economy because it encourages private ownership of business. In other words, people make money for themselves, and whatever they make is theirs. There is lots of incentive to work because the more you work, the more you get in return of that work. Socialist command market systems have no incentive for working hard because their wealth is evenly distributed amongst the entire community. For example, a garbage man in China with two children would earn more profit in the long run than a doctor without any children. The doctor has no incentive to work hard and be good at his job because he doesn't reap his work's profits. This is why the free market system is thought to be the best type of economy.
What are the pros of a free-market economy?
In a free-market economy hard work and personal initiative equal success. All businesses exist to make a profit and competition allows them to compete and provide customers with a selection, and the ability to get the best price for their product. In the free market system poorly made or expensive products will be rejected from the marketplace by the consumers.
Is a free-market economy the same as a market economy?
No. Both have a similarity in a basis in the marketplace. However, a free market is a special case in which there are no external controls on free economic action. Market economies may or may not have such influences, but are only contingent on some basis in the marketplace.For example, the United States is a market economy. But with the degree of government intervention, it is not a free market economy. The closest in the world today is Hong Kong, but a pure free market is as hard to find as pure communism.To expound further, this is a difficult question, as the common meanings of "free market", "market economy", and "true free market" are not what an Economist would define. That is, there is a disjoint between common usage and technical definition.From an Economist's standpoint, and Market Economy is any one which uses the principles of supply/demand and open trade to transact economic activity. As such, the world has come to the point where all countries use a Market Economy.However, inside the category of Market Economy are a large variation in the level of three factors: government regulation, government ownership of industry/infrastructure, and government social programs. An Economist would stay that having more than a very minimal level in each category would move that economy into the Mixed Market Economy category. As current governments have high levels of regulation, some minimal level of government ownership of industry/infrastructure, and at least moderate levels of social programs, it's hard to classify any current nation's economy as anything but a MME. That is, from the Economist's perspective, there are no Free Market economies, let alone True Free Market economies (except in places where there is no functioning government at all, such a places undergoing civil war or in a state of anarchy).To be clear, from an Economist's standpoint, a True Free Market Economy is a form of Market Economy where the government provides only two functions: a single legal common currency, and adjudication of contracts. A Free Market Economy is one where the government would add some lower level of regulation on allowable economic activity, such as pollution controls, or prohibition on certain abusive economic activities (i.e. market manipulation or abuse of monopoly status), but does not engage in either ownership of industry/infrastructure or any government-sponsored wealth transfer (e.g. social programs).So, really, we are splitting hairs. Given that all countries are running an MME (according to an Economist), when ordinary people say "true free market" or "free market", what they are generally referring to is those countries with lower levels of regulation/ownership/social welfare than other countries. In common usage, these terms are relative, not absolute.This can easily be answered without large paragraphs. A free-market economy is called Capitalism. A market economy... It isn't really a term. It is the Same as a Free-market economy. The people closest to this would be the Hong Kongese but even yet, they are what the U.S is: a Mixed Market Economy. Period.
What role did towns play in a free market economy in the English colonies?
they played many roles such as farming and household chores the slaves worked hard too
What are the advantages of a free market economy?
In a free-market economy hard work and personal initiative equal success. All businesses exist to make a profit and competition allows them to compete and provide customers with a selection, and the ability to get the best price for their product. In the free market system poorly made or expensive products will be rejected from the marketplace by the consumers.
What are the pros and cons of command economy?
Pros A sense of community within the economy Income equality Potential to get things done very quickly Cons Little innovation No competition within the economy Firms will have a hard time competition in the world market The quality of the good are detrimental Inefficient allocation of resources Lack of Freedom Lack of personal gain Generally, there is a lower standard of living when compared to a free market economy
How can you make a sentence with incentive?
The boss offered a cash bonus as an incentive for hard work
How much money did Live Free or Die Hard gross domestically?
Live Free or Die Hard grossed $134,529,403 in the domestic market.
What are the pros and cons of traditional economy?
Cons Lack of modernization, hard to change economy's "style" Little innovation No competition within the economy Firms will have a hard time competition in the world market The quality of the good are detrimental Inefficient allocation of resources Lack of Freedom Lack of personal gain Generally, there is a lower standard of living when compared to a free market economy Pros A sense of community within the economy Income equality Potential to get thins done VERY quickly The roles of individuals are clearly defined Every member of the society knows exactly what to do Most don't have complaints about what to do
What does 'free' mean as in The free market cost us 700 billion dollars?
In this case free = not regulated nearly hard enough.
Why do most countries operate somewhere between a command and market economy?
Nearly all modern economies in the world today have characteristics of both market and command economic systems. That is why they are called mixed economies. Traditional economies are very hard to find and could not function effectively for a whole nation. Nearly all the countries in Southwest Asia today would best be described as mixed economies, as they have the characteristics of a free market and free enterprise as well as some government planning and control.
