Why to Use Market Economy

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There are four types of economy, command, market, mixed, and traditional. A command economy is an economy where government control the economy. In market economy is there is a minimum amount of government control. A mixed economy is an economy that blends command and market economy together. A traditional economy is an economic system that is often used in rural areas. Among these four economic system, Mr.Robbins should use market economy for his new island, because market economy bring many benefits to a country. First, a market economy pushes businesses to make cheaper, better quality products so more people will buy the product that is being produced. The more options on the market, the more competitions. This results in higher profit for companies and businesses. When companies have more profit they can expand and make new products. If the company can produce new and better products, than it will bring even more profit in for companies. In a market economy, companies need profit to survive and stay in business. No profit means no money which eventually leads to the business or company going out of business. In the end, high profit from a market economy benefit the business and motivate them to expand their business. Second, market economy bring many benefits to the people, because people are the one who make decisions in the market economy. One of the benefits that market economy bring to the people is better quality products for less money. For example, when Apple make a new product, other companies such as Samsung or LG also come out with new products resulting in competition. Every company want people to just buy their products, so they would improve their products and lower the prices. As a result of competitions, people... ... middle of paper ... economy is not the main cause of pollution, it is the factories. At last, market economy brings more benefits than the disadvantages. In conclusion, a market economy would be a better system for Mr. Robbins to use on his island, because it will benefits the businesses and the people. Market economy would provide cheaper and better quality goods for the people due to competitions. Competitions can also make people work harder, because if they do not work harder, they would lose their job. This economic system will also give people lots of economic freedom. As a result of a high degrees of economic freedom, the income of the poor would rise up and there will be economic growth. In summary, market economy would be an overall better way to run a country, because this system can build an efficient economy that brings many benefits to the entrepreneurs and consumers.
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