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    Whether prices determined in a free market environment

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    Explain why you think prices are or are not determined in a free market environment in the United States.

    Contrast how a market system and a command economy try to cope with economic scarcity.

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    The United States has many elements of a free market, but many prices aren't determined solely in this manner. For example, the prices of agricultural goods are kept artificially high, as the government pays farmers not to produce. There are many other such examples. Whenever the government interferes in individual economic transactions, the market isn't free. For example, illegal drugs are more expensive than they would otherwise be because of ...

    Solution Summary

    The expert explains why they think prices are or are not determined in a free market environment in the United States. The market system and command economy are contrasted.

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