The "market system" (that is, an economy of self-interested individuals thatis largely organized...

Question

The "market system" (that is, an economy of self-interested individuals thatis largely organized through interlinked markets for resources and output)is often touted as thebestmechanism for producing the things that we want to have.

Do you think, though, that this is true?
Is it always true?
More stringently, is it ideal?
Are there examples of items that privately-owned markets don't produce effectively? In other words, do you think the government should play a larger role (or a smaller role) in controlling productive activity in this country?

Give supporting reasons and examples, not just opinions! In your subject line, include "Larger Role" or "Smaller Role". Failure to do so will lose you points!Also, let's take "Everything is cool as it is, so no change is necessary" off the table

Komalavalli · Accepted Answer

Market mechanism:
As far as economics is concerned, the mechanism of the marketplace tries to maximize the distribution of products and services by buyers and vendors with an open and known system of value and time transaction in the market at least in a number of ways. The mechanism may be in place in free markets or in captive or controlled economies to make the choice between supply and demand or some other type of fees for scarcity. The private sector (individuals, households and individual groups) distribute all resources in a free market economy; and all resources in the planned economy are held by the public sector (locals and central administrations); certain resources, both private and public, are owned by a mixed economy.

The "market system" (that is, an economy of self-interested individuals thatis largely organized through interlinked markets for resources and output)is often touted as thebestmechanism for producing...

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