Question

In a 1000 words explain how the free market would handle money, if there were no government intervention of any kind?

Answer 1

.A free market is a system where the economy allows the market to decide the prices of goods and services. In such an economy, individual preferences are given importance. In a free market, the consumer is the real kin.g and Government sets the view that market forces of supply and demand should focus on the allocation of resources. in such system, the role of the Government is to protect the property rights.

In a free market, every person benefits. Generally there is no advantage of government intervention in the market. But if there is no Governmrnt intervention, it will call for monopoly and tyranny in the market. Suppose if there is no intervention in the case of beverages outlets??? The sole control will be in the hands of the abkari themselves.

So whenever there is inefficiency of the allocation of resources, Govt. intervention is needed..