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Free market economy

Discuss the free market economic model. What are its virtues? What are its advantages and weaknesses?

Please provide 2 paragraphs.

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Free Markets and Responsibility

There are two schools of thought regarding free market economies
1. They will be the salvation of American society.
2. They are the root cause of social injustices and therefore evil.

They will be the Salvation of American Society

Some people support the free market purely because of ideology: They believe it is consistent with individual rights to life, liberty, and property (Ikeda, 1998). The theory of free market economy is one of supply and demand, scarcity of a product with a high demand results in a higher, and at times excessive, value (cost) being placed on the product. Economic theory postulates the economy is self-regulating; consumers will not purchase overpriced goods resulting in ...

Solution Summary

A brief discussion of the merits and drawbacks of a free market economy.