"One of the Failings of a Market System Is the Damage

question 48

Essay

"One of the failings of a market system is the damage to the environment.Pollution would not exist with a centrally planned economy." Evaluate this statement.

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Definitions:

Inconsistent Anchoring

A cognitive bias where individuals rely too heavily on an initial piece of information (anchor) to make subsequent judgments but inconsistently adjust away from that anchor.

Prospect Theory

A behavioral economic theory that describes the way people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known.

Matching Contribution

A contribution to a retirement plan, for instance, where an employer matches the employee's contribution up to a certain percentage.

Financial Well-Being

A state of being wherein an individual or family has control over their finances, can absorb a financial shock, is on track to meet financial goals, and has financial freedom to make choices that allow them to enjoy life.