Why to Use Market Economy Essay - 749 Words

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 more competitions. This results in higher profit†¦show more content†¦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 gr owth. 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 be able to get anShow MoreRelatedBussiness Qa Essay1476 Words   |  6 Pagesthe opportunity? 2. Why do companies tend to thrive in global markets when their country of origin enjoys a comparative advantage in their industry? 3. Explain how to calculate the balance of trade. How does the growing United States trade deficit impact the economy? Why? 4. Explain the meaning of â€Å"strong† currency and â€Å"weak† currency. What are the advantages and disadvantages of each? 5. Why is outsourcing such an attractive wayRead Morebusiness q@a Essay example725 Words   |  3 Pagesby Congress Treasury Department spent money on an auto industry 3. Compare and contrast microeconomics and macroeconomics. How do the two approaches interrelate? Use a specific example to explain. 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