What Arguments Are Made in Favour of a Free-Market Economy

question 81

Essay

What arguments are made in favour of a free-market economy? What are the arguments made by those who favour a large regulatory role for government? Consider issues such as economic productivity, economic inequality, and the extent of corporate welfare. Also, how do the recent corporate scandals, beginning with the collapse of the Enron energy trading company, play in to this debate?

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Definitions:

Responsiveness

Refers to the ability of a system or organization to react quickly and effectively to changes, demands, or opportunities.

Efficiency

The ability to accomplish a task or a set of tasks with the minimum amount of resources, time, and waste.

Pricing Scheme

A strategy or formula used to determine the selling price of goods or services.

Speed of Shipping

The rate at which goods are moved from the point of production or storage to their final destination.