Market/Mixed Economic Systems
Tim Shiflett p.1
Market/Mixed ecomies are the most common economic system at this current time
Essentially every economy that is not under a command economic system, and is not a traditional economic system is a Market/Mixed economic system. Examples of this are all the America's, all of Europe(except Belarus), All of Asia(except for North Korea), Australia, and depending on the situation most of Africa
Advantages of Market/Mixed economic system. Market/Mixed economic systems give individuals economic and political freedom. This allows individuals to grow their interests and talents in jobs that they enjoy, not that they are assigned to.Since the government does not control what is produced, politics are much more open due to politicians still being able to be funded by companies even if their views are not supported by the government In a command economy the government controlss what is being produced by the companies, so they can control politics by stopping a company from product if their views do not reflect theirs. Another advantage of the Market/Mixed economic system is that it is profit based. This is an advantage due to new things being created and sold for profit allowing the economy to grow, and due to the fact that being paid more for better work is a good incentive to get people to work
Disadvantages of Market/Mixed economic systems. In a pure Market/Mixed economic system the economic good of the individual is the only focus. This is a disadvantage due to it leaving out any way to provide public goods and services, like the defense of a country. Another unfortunate disadvantage of the Market/Mixed economic system is that it is not kind to those that cannot provide for themselves. An example could be the disabled or the elderly. A less important disadvantage is that the Market/Mixed economic system is that it does not prevent the unequal distribution of wealth. the last disadvantage of Market/Mixed economic system is that without any regulation the companies and corporations can treat their workers horribly. The workers would work insanely long hours, in insanely dangerous conditions, and would be paid a shockingly low amount of money for it.
Market/Mixed economic systems are affected by the 3 basic economic questions in interesting ways. 1. What is to be produced? The goods that a company makes is based on supply and demand. If their is a want for cheaper cable TV and internet, it would not make sense for a company to sell their cable TV and internet at a more expensive price than their competition. 2. How are the goods to be produced? If a company produces a good in a way that costs them $1:50 for one product, they would be happy to use your product if it reduced the cost of making one of their product to $1:00. This should then lower the cost of the product, allowing for the market to grow. 3. For whom are the goods produced for? It would not make sense for a company to provide cable TV and internet to people that do not use electronics, or are a nomadic people. They would flat out never use the service, or the company would not gain enough profit to be economically viable.
http://blogs-images.forbes.com/chriswright/files/2... market image.
http://wps.prenhall.com/wps/media/objects/2066/211... 3 economic questions flow chart
http://www.ncpa.org/images/1914.jpg Economic freedon Versus Political Rights index
All information was gathered through the Economics textbook