Market Economy

988 Words4 Pages
According to Economics: Principles & Practices, one of the disadvantages is “that it does not provide for the basic needs of everyone in the society.” That is true, but with the assistance from some government services such as Social Security and Medicare, the people will be helped and still remain free to purchase and buy what they want. Another disadvantage that is stated is the possibility of economic failure. The economic could fail if there is not enough competition. In a mixed market economy, the government helps prevent monopolies and to ensure competition (Economics, pg 39). With the competition, motivation is created to strive to be successful. The goals that a mixed market economy is trying to accomplish are economic…show more content…
A market and a mixed market economy are very similar. They share many advantages and disadvantages. The main difference is that there is almost no government involvement at all. This could display and advantage and also disadvantage. The advantage is that the government is not holding you back by small laws and rules. This could make you wealthier and wealthier and give you more and more power. There are no restrictions on selling and buying items along with handling them. This also, however, could be a disadvantage to most people. In a market economy, there is no financial service that the government runs. In simpler terms, the poor get poorer and poorer. There is no aid you can get from the government to help you because of the very little government involvement. In a mixed market economy the producers and consumers decide on the three basic questions in economics. The questions are what, how, and for whom to produce. Supply and demand answers the questions. The consumers wants determines what is produce. The producers determine how to produce it by figuring out the most efficient way to make what the consumers want. For whom to produce it for is the consumers and whoever is willing to pay for the product. (Economics pgs 6-7) As one can see, a mixed market economy gives citizens freedom but with the protection of the government. There are many advantages to this type
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