- How is the basic economic problem being handled by the use of coupons? Why might this be less successful than money?
- Does the article demonstrate the failing of the command or free market based solutions to the basic economic problem?
In addition to the above below is a link to Mark Johnston’s econfix blog. The post highlights the possible negative externalities that have occurred in Berlin with the change in economic systems.
The Crisis of Capitalism, are we really using the right system? Capitalism has been the champion of the free market system, but is there an issue with the foundation of our system.
Advantages and Disadvantages of a free-market economy
- Self-Adjustment (equilibrium):
- Human Psychological Aspect:
Advantages and disadvantages of a Command economy:
- Planned & Greater Predictability:
- Elimination of Opportunity Cost:
- Valuation of Services (education, health, etc.):
- Misallocation of Certain Resources:
- Lacking Innovation (no choice or variety):