Discuss the free market economic model. What are its virtues? What are its advantages and weaknesses?
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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 ...
A brief discussion of the merits and drawbacks of a free market economy.
Cuba: Capitalism vs. Socialism
****NOTE: THESE QUESTIONS PERTAIN TO COLLEGE GRADUATE LEVEL ECONOMICS.
Please click the following link. http://www.mhhe.com/economics/solman_video_mov/capital_cuban.mov.
Once you have reviewed the content, please answer these questions:
Why is a struggle underway in Cuba between social equality and the free market? Why did Cuba permit free markets? Who in the video wants Cuba to remain socialist? Why? Who in the video prefers free markets and capitalism? Why? What is the role of incentives in this struggle? In your view, which force will win? Why? In completing this post, consider how a market economy versus a socialist economy allocates resources.
*Other references, along with the video can be used to support the answers to the questions.
** The attachment is the transcript (word form) of what the video is saying.View Full Posting Details