Question

Free Markets are a way of connecting people who may mutually benefit by exchanging goods and services through a process of buying and selling.

Identify an economist who agrees that in general free markets are a desirable way of organizing economic and social activity. Identify another economic concept that this Economist supports. Discuss how this economic concept can help you improve your life or society.

Your answer needs to provide at least three paragraphs.
The first paragraph provides information about the economist.
The second paragraph identifies the economic concept that you have chosen.
The third paragraph discusses how you are going to apply this concept.

Answer all the questions in well developed paragraphs. The paragraphs should be at least five or six sentences long, and they should clearly include a topic sentence.

Answer 1

Friedman is the economist who supported free market mechanism.free market is when transaction between buyer and seller takes place according to demand and supply of the product.demand and supply are the market forces through which free market mechanism functions.

Friedman said that free market is important for the economy.for proper functioning and organization of social and economic activity.development of economy takes place.efficiency takes place in the economy.resources are used in the best possible way.

Other theory of friedman

Quantity theory of money

Friedman believes that either money can be either used as a medium of exchange or it can be held in wealth forms such as money,bonds,equites,non-human capital and human capital.either person can hold cash for transaction or either invest in the above wealth forms.

Because of quantity theory of money,investment will increase in the economy,resulting into economic development of the country.