Explain why many economists argue that the free market benefits both sides of the market

Expert Solution

Yes, It is true that the free market benefits both sides of the market i.e. consumer and producer.

A free market has features like free entry and exit for the producer, Private ownership, freedom of choice and free enterprise and Zero government interference and the market is driven by the motive of self-interest.

Such features in the free market allow both the seller and producer of the good to make a free decision based on their own self-interest, a consumer is allowed to consume as much as they want and the producer can sell as many goods as they can and at a most competitive price. Government interference in all this zero.

In a market which is not free, the government makes the decisions and it affects the normal growth of the organization. As everyone works on their own interest benefit of both the seller and buyers are insured, prices are determined by the competitive forces of demand and supply in the market.

Competition ensures a greater transparency in the market and the producers are free to innovate and take business risk all in the benefit of the economy. Some economist even says that free market helps in establishing a free society.

Rahul Sunny answered 1 year ago

Explain why economists generally argue that perfect competition is the most desirable market structure. Your answer...

Explain why economists generally argue that perfect competition is the most desirable market structure. Your answer should reflect what economists argue. Whether you agrees with the view held by economists is immaterial to this question: explain the economic argument.

Explain why economists argue that all cases should be plea bargained (and why there should not...

Explain why economists argue that all cases should be plea bargained (and why there should not be trials). Also, explain why divergent beliefs can justify the existence of jury trials.

0. The underlying reason why trade benefits both sides of a trading arrangement is rooted in...

0. The underlying reason why trade benefits both sides of a trading arrangement is rooted in the concept of __________________. A. opportunity cost B. specialization C. absolute advantage D. maximum production 11. A ____________________ policy will cause a greater share of income to be collected from those with high incomes than from those with lower incomes. A. proportional tax B. regressive tax C. progressive tax D. excise tax 12. The government can use _____________ in the form of ____________________ to...

What is better for economic growth- the free market or government or both? Please argue each...

What is better for economic growth- the free market or government or both? Please argue each point and explain the rational behind the choice.

Explain how economic growth is measured and how and why economists such as Nicholas Stern argue...

Explain how economic growth is measured and how and why economists such as Nicholas Stern argue that there might be a conflict between the policy objective of growth and the policies to deal with the problems of climate change? Word Limit: 200 words

a) Explain why economists argue that the economic impact of sports teams is much less than...

a) Explain why economists argue that the economic impact of sports teams is much less than usually claimed, what it costs the city, and why the city isn’t going to make its money back. b) Explain in economic terms how a sports league makes the decision to expand or not to expand. Make sure to explain the economic goals of the league.

Explain why some economists argue that payment by cheque is the same as giving trade credit....

Explain why some economists argue that payment by cheque is the same as giving trade credit. If this is the case and considering that cheques are drawn on bank current accounts (as are payments by bank debit cards), do cheque payments count as money?

Define free trade. 9. Why do many economists believe that unrestricted free trade between nations will...

Define free trade. 9. Why do many economists believe that unrestricted free trade between nations will raise the economic welfare? 10. Explain Q.9 above in terms of absolute and comparative advantage,

QUESTION 8 Which color will argue both sides of an issue and avoid stating what they...

QUESTION 8 Which color will argue both sides of an issue and avoid stating what they believe to be already obvious? A. Gold B. Blue C. Green D. Orange 2 points QUESTION 9 What color is the largest percent in the general population? A. Gold B. Blue C. Green D. Orange 2 points QUESTION 10 Which color is known for their organizational skills? A. Gold B. Blue C. Green D. Orange 2 points QUESTION 11 Which color...

Explain why most economists would argue that a two-in/one-out rule for regulation is not consistent with...

Explain why most economists would argue that a two-in/one-out rule for regulation is not consistent with a cost-benefit approach to regulation. Give a potential rationale that would be used by some economists who believe that in practice it is. Define a regulatory approach. Repeat the previous analysis for a policy with a (small) regulatory budget.

Question