Free Market Economic System
The free
market economic system is a system that is commonly used today. In this
economic system there is a lot of freedom as there is private enterprise,
innovation is encouraged, government doesn't get in the way and prices are
determined by the interaction of supply and demand. The main disadvantages of this system are only people who are
willing and able will get the goods and services as there is inequality in the
free market system as the government doesn't intervene. There is also a high
rate of unemployment and a chance of a market failure in which company are in a
monopoly. Hong Kong is an excellent
example of the free market economic system, as many private enterprises are
present, there is a lot of innovation and the government doesn't intervene
much.