Market types

Question 1

What do you think the meaning of a free market is?

Answer 1

When the government has minimal control over the economy

Question 2

Think of some advantages of having a Free market economy

Answer 2

Little intervention from governments-

less complicated bureaucracy needed-

Government can spend less on projects

Prices depend upon supply and demand

Question 3

Think of some disadvantages within having a free market economy

Answer 3

less Competition between firms,

• Prices can be extortialty high regardless of supply and demand

Power/property is distributed unequally at the expense of poorer people

Social goods in society might not be produced in the private sector - counter-terrorism is not funded by the government-who will fund them

Question 4

What is the opposite of a free-market economy?

Answer 4

A command market economy