What Are The Benefits Of Both Market And Mixed Economies?
A market economy is an economic system in which the central government plays no significant role. The economic decisions and pricing of goods and services are solely made by the overall interactions of a nation’s citizen. The benefits of this system can be that it makes the firms competitive simultaneously increasing efficiency. Firms to remain competitive and maintain a differential advantage go for more innovation. Economic freedom is present as there is no government intervention and this makes room for a higher standard of living and better work wages. People being in a competitive market quickly acquire the technical and social skills and knowledge needed to function in market economy. Price flexibility can also be observed as all the prices are based on the demand and supply trends. In a mixed economy an individual can help guide the economy not only by being consumers of the society but also by selecting the right officials who can manage and shape their economic policies. The G
