Market Economy

I think that the most important strength of the market economy is that it has a large variety of goods. Companies can make what ever product they want and consumers can buy what ever they want. Nobody is regulating what people should buy or sell.

This in turn allows higher consumer satisfaction. People will be more happy when companies are actually listening to their needs and are trying to meet them. There is more room for innovation and invention. Progress is easier to attain and the economy won't remain stagnant.


Why do some countries continue using a traditional or command economy after seeing the advantages that a market economy can bring?

Opportunity Cost

I had to consider my opportunity cost when I had to choose between piano and swimming. I was falling behind in piano because I had very little time to practice. I also wasn't practicing as hard as I can at swim practice.

If I stay in swimming, I can stay athletic, active and competitive in a sport I really enjoy. I can stay with my swimming friends and have a great experience. It will be very good for college too. If I continue piano, I can complete all 10 levels of syllabus, and go to festivals and competitions. I love music and I would be doing something I enjoy. Both of these activities are really expensive, so I can only pick one and concentrate on it and become really accomplished in it.

I had to pick swimming because it had a more promising future. I can still play piano on the side, I just don't need to pay for lessons anymore. So in a way, I still get to do both of them.


How do companies face their opportunity costs when both options are either equally good or bad?

Scarcity, yo.

socialnetworkingandyou.com

Something that is scarce in my life is social networking. The only thing I have is a blog; this blog. This is not something that is scarce in the world though. This image shows how many methods of social networking there are out there.