Economic System Essay Example | Topics and Well Written Essays - 1000 words

Economic System - try on ExampleFree market frugal carcass induces competition among different companies for there is no outdoor(a) evaluation. Presence of numerous competing companies brings great benefits to the consumers. Each company would strive to give their best as they would be thrown out of the market if found inferior. Free market permits full competition between companies. This would power companies to offer their best goods and services so that they will not be neglected by the consumers. Companies would contend in making better cheaper products in unload market economies. Higher quality services and slender products would fill the market because of competing companies. Free market also offers better freedom to consumers as they would be free to buy what they choose. Free market is therefore considered more effective than other economic systems. composite prudence does not offer freedom and choice for consumers as well as companies. Restrictions, interferences a nd extreme control oer business activities would discourage businesses. Excessive control would also make businesses incur more costs. Restrictions would limit certain(p) companies with providing competitive products and services. This would make consumers deprived of numerous choices that they enjoy in a free market system. Mixed economy system is thus considered little effectual than free market system. ... If free market system is imposed, business would flourish, producing varieties of products. More people would continue to buy products and services as numerous varieties of products and services become in the market. As businesses grow and flourish more people would be hired for work. This would lessen the conundrum of unemployment in the society. If businesses flourish and expand the society would be freed of unemployment. This would stimulate the economy and brings an overall growth. In a mixed economy there would be heavy taxation and external interferences. Excessive ta xation would impress the incentives and benefits directly. This would discourage people so that they would not work efficiently. Lack of incentives dishearten employees and make them deliver less work. This would affect companies and the products they offer. This hampers development in all sectors of the society. Mixed economic system is thus considered less efficient than a free market economy. In a free market economic system agreements atomic number 18 made faster compared to a mixed economy system. Interference from government would slow down the agreements in a mixed economy system. Governments are notoriously slow in making decisions and implementing it. Policy making takes its own time and delays all the subsequent activities. Government would make decisions and assign the work to the concerned departments. This allocation, decision-making and carrying out lag and often shift towards a pending status. Allocation of resources and its disbursement also get hold up in a syst em where government is in control. In a free market economic system such delays and laggings are absent as there is no intervention or travail from the