free market

free market - services by the market is not efficient Also...

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3. Explain the disadvantages of a free market. Free marketing is always considered as an ideal economy system. However, it also has a lot of disadvantages. For example, It leads to unfair distribution of income since there are no government intervention. It also takes no consideration of social costs and benefits. wastage of resources. Free market is the perfect solution to the perfect world. Since imperfections exist in the world, free market forces can sometimes harm the poor, which means no incentives for the poor, sick and elderly. In addition, there are some professional terms for the problem of free market, like market failure. A market failure exists when the production or use of goods and
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Unformatted text preview: services by the market is not efficient. Also, there is problem of free riding. In economics, collective bargaining, psychology, and political science, "free riders" are those who consume more than their fair share of a public resource. Although free market has quite a few disadvantages, we should not reject it, because it also has many advantages, like, it brings up competition, which brings improvement. We should always keep in mind that everything has good and bad aspects.
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This note was uploaded on 12/31/2011 for the course ECON 111 taught by Professor Jerryfreek during the Spring '11 term at Ave Maria.

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