In this short topic video we look at the key features, advantages and potential drawbacks of a free market economic system.
What is an economic system?
An economic system is a network of organisations used to resolve the problem of what, how much, how and for whom to produce
What is a free market economy? I.e. a laissez-faire system
Key aspects of a free market system
Overall, in a free market economy, the economic problem of what goods should be produced is usually solved by consumers expressing their tastes and preferences in their pattern of spending
Economic Freedom Index - Top Ranked Countries for 2019
Potential advantages of free market systems
Potential disadvantages of free market systems
Free markets can fail to achieve an economically and socially efficient and equitable allocation of resources – there are numerous potential causes of market failure that may require government intervention.
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