Free Market Essay - 803 Words

Business Ethics Assignment 3 March 21, 2012 Free Market System in Belize According to the Investopedia, ‘a free market system is a market economy based on supply and demand with little or no government control. It is a completely free market in which buyers and sellers are allowed to transact freely based on a mutual agreement on price without Government intervention in the form of taxes, subsidies or regulation’. Therefore, the free market system is good for Belize. Belize positively benefits from this system because it ensures competitive markets, the consumers are part of the decision making process, and the supply and demand create competition. The free†¦show more content†¦Supply and demand create competition, which helps ensure that the best goods or services are provided to consumers at a lower price. This will lead the businesses to having better quality and service and by having this the business itself becomes an overall better business. This benefits the society because they are receiving better goods and services and at a lower price. An example would be the fruits and vegetables sold at the market. Different stalls at the market may have different prices, so the consumer may have the option to buy the one with the lowest price or the one with the best quality. If the good is bought based on the lowest price then the other stalls will need to lower their price as well because if they don’t then they might not sell their goods. In an article by Chris Seabury, he states that in the United States those who want the removal of government intervention say the free market would force the businesses to protect the consumer. This in turn would provide the customers with quality goods and services at low price. Also he stated that there are several disadvantages to having government intervention. Government intervention can create a huge government bureaucracy, it can create huge monopolies, and it can compress innovation by over-regulating. Firstly, government regulation creates a huge governmen t bureaucracy that stifles growth. In USA many labor and environmental regulationsShow MoreRelatedFree Market Economy Essay461 Words   |  2 PagesA free market is a type of market that the government is not involved in. Since the government does not care about what happens, the free market is also called â€Å"hands-off† or â€Å"let it be economics†. The government is limited to protect the citizens from the danger and that is the major goal for the government. In the free market economy, there are three components of the free market economy: competition, active but limited government, and the self-interest. Competition is one of the main componentsRead MoreEssay on Opportunity Cost And The Free Market1736 Words   |  7 PagesOPPORTUNITY COST THE FREE MARKET Scarcity is one of the most basic and crucial points to understand in microeconomics.1Scarcity means that we cannot have all the needs and wants to satisfy our desires. Scarcity can be applied to almost anything. Due to the scarcity of products we must make a choice of what we want. We must choose whether to do one thing or another by what we value to be most important to us. This, therefore, leads to us opportunity cost. Usually when one has to make a decisionRead MoreEssay Free Markets: Why Governments Intervene2045 Words   |  9 PagesFree Markets: Why Governments Intervene Free markets have often been idealized in the US, and have become a dominant tool for trade and distribution of goods and services. There have been multiple waves of government regulation and deregulation of the market in US history. Each of these trends have been grappling with the central question of how sufficient markets are at satisfying our goals. In theory, free markets are fair and efficient at distributing goods and services. In reality, howeverRead MoreAdam Smiths Contributions to Modern Free Market Economics Essay2275 Words   |  10 PagesAmong economists, it is said Adam Smith is one of the main contributors to modern free market economics. His thoughts attacked mercantilism which was the prevalent form of government at the time. His works provided systematic rationales in the subjects of capitalism, free markets, and limited government intervention. His most popular books changed history because without them, many of these thoughts and ideas would not be so pr evalent. Smith is regarded and cited as the father of modern economicsRead MoreFree Market and Freedom Essay612 Words   |  3 PagesThe fact that free markets are based on a contractual agreement between the buyer and seller with very little government control makes it feasible to consider it to be compatible with individual freedom. (Free Market: 2014) Classical liberals may agree with the objectives of free markets, as they emphasise the importance of individual freedom with limited control of the state. (Hagopian)The counter argument is that when the free market economy is fuelled by profit motives, it sacrifices some ethicalRead MoreEssay On Corporations And Free Markets1492 Words   |  6 PagesChaz Hogenauer Honr 292 11/24/2017 How Corporations and Free Markets Affect the Creation of Knowledge In our society there is knowledge created every second of every day. All day long there are new stories covered by CNN, FOX News, ABC News, The Young Turks, etc. and even more rapidly than these news stations can cover stories articles are published on Facebook, Twitter, Redit etc. This creates a nonstop flow of media and new stories right into our cells phones, laptops, televisions, and even nowRead MoreCritique of Milton and Rose Friedman, Free to Choose.1587 Words   |  7 PagesEssay question: Milton Friedmans claims that ‘voluntary exchange is a necessary condition for both prosperity and freedom. Carefully examine the assumptions about ‘power, ‘choice and ‘market efficiency that underpin his claim. Give reasons for your agreement or disagreement with him. This essay is a short critique of the theory by Milton and Rose Friedman, Free to choose: A personal statement, focusing on chapter 1. I will argue that Friedman is right in saying, Â… voluntary exchange isRead MoreNot Enough Supporting Research for Addiction in Free Markets1714 Words   |  7 PagesShaler’s essay â€Å"Addiction in Free Markets†, this would be the first reaction of many readers, as it was my reaction upon completion of the essay. Although Alexander and Shaler discussed a very important issue concerning ‘Addiction in Free Markets’, they do not provide sufficient resources or correlative research to prove their argument. Firstly, their thesis statement does not agree with many of the facts and statements that are being presented throughout the essay. Moreover, the essay sidetracksRead MoreMain Economic Characteristics Of A Free Market Economy1506 Words   |  7 PagesThough there are three different types of economies that exist  œ free market economy, planned (also known as command) economy, and mixed economy, this essay will focus mainly on free market and planned economies. It will examine the main economic characteristics of each of the two economies and compare how they differ from each other, while in relation to the UK public sector. A free market economy is based on supply and demand and all major economic decisions are made by individual economic agentsRead MoreBusiness and Its Publics: Cycle 1 Essay1697 Words   |  7 Pageshave emerged: efficient market regulation and free market guidance. Currently, the United States economy operates as an efficient market. In an efficient market, the government regulates the economy; it attempts to solve problems before they are self-corrected by free markets. The government also provides for the general well-being of its citizens in an efficient market, administering important social services such as education and environmental protection. Supporters of market regulation believe externalities