This website uses cookies to ensure you have the best experience. Learn more

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...

Find Another Essay On Market Economy

"Creating Market Economy in Eastern Europe"

9546 words - 38 pages Annual Paperof “World Economies”“Creating Market Economy in Eastern Europe”The SummaryIntroduction1. Meaning of market Economy and Tasks of the Transitions.2. The Emergence of Market Economy in European countries.2.1. The Transition to a Market Economy.2.2.Poland and Hungary as the best example of transition in the East Europe.3.Moldova’s way to an open economy.Conclusion.IntroductionThis paper is oriented toward the

Evolution of the Market Economy: Jobs

1597 words - 6 pages The evolution of the market economy began during the pre-industrial era and ended roughly, by the end of the industrial revolution. The nature of labor drastically changed for the American workers and slaves, specifically in Philadelphia. Society was predominantly based on artisan work up until the emergence of the division of labor. Adam Smith and Alexis de Tocqueville have different opinions on how it effected the development of labor in

Why do Leftist Christians Reject the Free Market Economy?

994 words - 4 pages Ken S. Ewert's "Moral Criticisms of the Market", analysis’ how leftist Christians are not supporters of the economic system of a “free market economy.” A free market economy is where citizens, partnerships or enterprises have the ability to freely trade with others based on supply and demand of products. This allows for free competition and choice within an economic system. One of the main themes that Ewert tries to state is that Christians

The Modified Market Economy, concentrated mainly on Australia

514 words - 2 pages What is a modified market economy? What factors have been responsible for the emergence of this kind of economic system? How do governments influence economic decision making in such systems? Use Australian examples to illustrate your answer.A modified market economy is a market economy in which there are varying amounts of intervention and property ownership by the government. The Australian economy would be classed as a modified market, as we

Strong Economy and Its Effect on Financial Market

1025 words - 4 pages Following the trend of economy, it is important to investors to understand that strong economy creates strong stock market. To elaborate further, as stock prices are increased by current and future expectations of earnings, thus without a strong economy it would be difficult for the companies to increase and sustain their earnings (Kong 2013). The economy development is usually calculated using the gross domestic product of a countries. On the

Products, Services, and Prices in the Free Market Economy

1208 words - 5 pages A firm's success in a market economy depends on meeting customer needs by producing the products they want and selling goods and services at prices that meet the competition they face from other businesses. The issue to be addressed is best utilizing producer's inputs to the greatest output value.The first decision to be made in this instance is to decide what the possible size and type of consumer demands. It must be understood that a company

Benefits of the Market Revolution on the Economy

716 words - 3 pages and industrialization. Though this was great for the Americans it did affect the Native Americans and African slaves in a negative light. Even though it had ups and downs from different point of views the market revolution changed and improved how our economy is today. Works Cited Daniel Walker Howe pg. 259 Harriet Hanson Robinson, a “Lowell Girl,” Describes her labor in a textile mill, 1831 pg.239 Daniel Walker Howe The changes wrought by cotton, transportation, and communication pg.256

Central Bank's Influence On The Market In The National Economy

1007 words - 4 pages Define the role of the Central Bank and its influence on the market in the national economy. “Monetary policy is the process of supplying nominal money, look after the availability of money and cost of interest rate, which is controlled by the government or central bank, can be rather an expansionary policy, or a contractionary policy.” The expansionary policy is adopted to increase the whole amount of supply of money in the economy, and a

The Premarket vs. The Market Economy: Preliminary Economics

1262 words - 5 pages There were certainly many factors that carried society away from the many pre-market economic methods that were applied in the Middle Ages. The premarket society was very antiquated; the economy stemmed from traditional values and methods, such as farming, slavery and the idea that "wealth tended to follow power" (21). You were born into a certain niche and life and your only job was the fulfill it; basically if you were born into the royal

Solving the Foreclosure Crisis While Protecting the Free Market Economy

1046 words - 4 pages situation, should take their situation as a call for help and attend a personal finance class. Consumers should read the mortgage contract before they sign it. If, when they read the contract, the terms and conditions are too complex, they should request clarification in writing, or request more simplistic terms. The most important component of the foreclosure crisis solution is to protect our free market economy by allowing it to provide

Products, Services, and Prices in the Free Market Economy

1213 words - 5 pages Products, Services, and Prices PAGE \* MERGEFORMAT 1 Running head: PRODUCTS, SERVICES, AND PRICES IN THE FREE MARKETProducts, Services, and Prices in the Free Market EconomyUniversity of PhoenixProducts, Services, and Prices in the Free Market EconomyA free market economy is a market "where buyers and sellers can make the deals they wish to make without any interference, except by the forces of demand and supply" (, 2009

Similar Essays

Planned Economy Vs Market Economy Essay

2280 words - 9 pages managers achieve quantitative goals, they did not encourage them to cut costs, innovate, and meet unmet needs • advantages and disadvantages of market economies and planned economies: Market EconomyPlanned Economy Advantages Disadvantages Advantages Disadvantages 1. better provision of incentives 1. the market satisfies demand but might not meet needs 1. successful at rapid industrialization and structural change 1. enterprises tended to be

Free Market Economy Essay

952 words - 4 pages The United States is known to operate in a free market economy. In other words, the economy is based solely on supply and demand with little to no government control. In reality, however, the United States has various government regulations on our country’s market. The amount of regulation that is necessary is a continuing debate among politicians and economists to this day. Some would say that the key to a successful market economy is to remove

Whatís An Emerging Market Economy? Essay

1085 words - 5 pages By definition an emerging market economy is one that has a low to middle per capita income which is in the process of moving from a closed economy to an open market economy. They currently represent approximately 20% of global economies. Although China is considered to be one of the largest economies of the world it is still classified as an emerging market due to its developments and reforms and low capita income per head. In general, emerging

Uk Vs. Germany Economy And Labor Market

1906 words - 8 pages of the health of an economy. This paper will compare the economies of the United Kingdom and Germany as well as their labor market (Shimer 2010). Germany has the largest economy in Europe and the fifth largest in the world. Germany is known for its high quality machinery, vehicles, chemicals and household equipment that form the bulk of its exports. Its vast manufacturing industry has thrived as a result of the existence of a large pool of