ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is too expensive
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It is too difficult to run
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It is too dangerous because people could by dangerous things
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It does not allow free trade
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Detailed explanation-1: -Many economists argue that a pure market economy cannot come about because people will always have incentives to use coercion (Cowen and Sutter, 2005; Holcombe, 2004). This working paper maintains that these economists leave out an important factor in social change.
Detailed explanation-2: -The disadvantages of a market economy include monopolies, no government intervention, poor working conditions, and unemployment.
Detailed explanation-3: -In such an economy, the government serves no role in regulating or supporting markets or firms. In reality, no country is purely capitalist and no country has a purely free market–there is some sort of combination of markets and regulation, with different countries falling at different places on the spectrum.