To what extent do you agree with free market economies being more Essay - 1

To what extent do you agree with free securities industry economies being to a greater extent effective than a mixed preservation - Essay ExampleAll individuals act on their behalf til now the actions argon aimed at satisfying consumer needs. The free market economy is controlled by a price mechanism where the prices of goods and services are not determined by the politics (Kates, 201134). They are determined by the trade between the forces of demand and try whereby price acts as an indicator for the suppliers to decrease or increase supply so as to reach an equilibrium between the forces of demand and supply and the best allocation of resources. Income and resources are distributed and allocated efficiently by using the price mechanism. A free market economy is an economic dodging that is not influenced by the government or other political forces (Kates, 201134). The rate of growth in much(prenominal) an economy relies on the level of consumer activity that is connected to the consumers purchases. This kernel that economic growth is possible in an economy that is not controlled by the government. Free market economies are closely linked with capitalism in the modern-day usage and popular culture. Cooperative members, market socialists and supporters of profit sharing support free markets. why is a free market economy better than mixed economy? A free market economy is better than a mixed economy in various ways. ... Secondly, free market economies are flexible and therefore adjust freely to change. If there is a change in demand of a certain good or service in the market, companies can increase their production to meet the change magnitude demand in the market. Conversely, in a mixed market economy, the government regulates the quantity that is produced and supplied in the market. in that respect is increased disputation among the major producers in the company. This mounts increasing pressure on the producers to improve their products and lower their prices so as to attract a higher number of consumers (Sirico, 201214). On the contrary, in a mixed economy a central authority such as the state or the government regulates the quality of goods and services. This means that the competition in the prices of goods and services is minimal hence consumers do not benefit in the long-run. In addition, increased competition among the producers encourages production using the latest technology (Kates, 201134). In other words, increased competition in the market leads to increased innovation that positively contributes to productivity. A free market economy encourages logical self-interest. People have more than freedom to undertake actions that they want and to buy and sell what they want. Consumers have more freedom to produce and sell what they want with minimal government interference. However, in a mixed economy, the government sets the standards to be followed by the producers and consumers. Finally, the consumers determine the success or failure of a products or service in the organisation (Sirico, 201214). This means that the consumers have more power to drive the prices of goods and the quantity produced. On the other hand, in a mixed economy, a central planning