Economics Assignment Example | Topics and Well Written Essays - 3000 words

Economics - Assignment Exampleple believe that market system can help in creating a positive investment climate because the family as a whole decides upon what they want to gestate for a particular good and services. This decision cannot be influenced by any other force keep out buyers and sellers. The idea is that the buyers and sellers will work out the price and this price will be just. Because it is set by the people everyone will be happy. Also libertines will try to avail the opportunity to earn dough and will come and invest. They will supply what they think people will demand and everyone in the society will benefit or in other words investment climate will improve. foodstuff system is also supported by some due to the increased competition between firms. When many firms are operating and there are no major subsidies or restrictions laid down by the government then all firms have equal opportunity to excel. This brings all the firms on the same take and then innovation increases as the firms want to do better than the other firms. As a outgrowth consumers get a variety of harvests and monopoly of suppliers is hindered. This also improves the investment climate of a country.If a firm comes up with a great idea then it temporarily enjoys abnormal profits. But because there are no trade barriers other companies also try to replicate the same idea and the profits of the first firm come back to normal. This is how market system encourages a positive investment climate. The interests of the firms, the consumers and the society as a whole are preserved and this is why many people think market system as the best mechanism for allocating scarce resources.In a market system of economy peoples need are catered well. Firms supply product or services if the buyers demand a particular product or services. Also people spend money on things they think will improve their flavour style so they are more contended.People also believe that resources are distribute d evenly in a market economy. This is because