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Market Economy Essay

888 words - 4 pages

There are four types of economy, command, market, mixed, and traditional. A command economy is an economy where government control the economy. In market economy is there is a minimum amount of government control. A mixed economy is an economy that blends command and market economy together. A traditional economy is an economic system that is often used in rural areas. Among these four economic system, Mr.Robbins should use market economy for his new island, because market economy bring many benefits to a country.

First, a market economy pushes businesses to make cheaper, better quality products so more people will buy the product that is being produced. The more options on the market, the ...view middle of the document...

With more varieties of products, the chance that a company survive increases. In the market economy, people decide which company will thrive, instead of the government. The people can decide what products will come out, because they are the consumers and what they want is very important to the companies and entrepreneurs. To conclude, consumers are the rulers of the market economy and they decide what products will flourish.

Furthermore, market economy gives more economic freedom than command, mixed, and traditional economy. In a market economy, there is more economic freedom and less government intervention. Entrepreneurs would not have to wait for permission from the government to make an innovation. Economic freedom leads to higher income for the poor. According to an article written by Robert A. Lawson, a professor of Economics, economic freedom can rise the income of the poor. With higher income, there will be less people in poverty. Economic freedom is vital for economic growth. For example, North Korea use command economy and South Korea use market economy after Korea was divided. Now, North Korea’s economy failed, but South Korea’s economy prospered. As you can see, a market economy with a high degrees of economic freedom can lead to prosperity. As a final point, economic freedom can bring many benefits to a country, such as the freedom to innovate, higher income, and economic growth.

On the other hand, some people might say that a traditional, command, or mixed economy are better than market economy. They might say that a market economy does not bring benefits to the government, then kids will not...

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