Economics for Business and Management Essay Example | Topics and Well Written Essays - 3000 words - 4

economic science for Business and Management - Essay Exampleeate irregularities such as economic slumps are caused because of government work restrictions, excessive power of trade unions and monetary policies of governments. The French economist J.B. was a prominent support of commercialise dodge and in the early nineteenth century he argued, Every seller brings a emptor to market, which means supply establishes its own demand (The Socialist Party, 1997).Four major factors flowerpot go through how effectively market musical arrangement tin work. These factors overwhelm the profit motive, availability of information to producers and consumers, accurate set and ease in distributing resources (Bized). Free market system has the tendency to allocate resources where the most profit can be generated because profit generation is the primary motive of market system and the system naturally explores the areas which can maximise the profits. Moreover, supporters of market system ar gue that price mechanism is the best way for the efficient allotment of limited resources.McConnell, Brue and Flynn (2009) have identified three merits of market system which attracts the support of people and make this system as the best way to improve investment climate. First, the efficient allocation of resources in the market system is possible because this system encourages the production of products most needed by the society. This system encourages the adoption of techniques which are to a greater extent efficient from production point-of-view and also promotes the adoption of latest techniques. Second, the three skills promoted by market system include hard work, acquisition and innovation. Third, market system gives personal freedom rather than central planning which encourages self-interest of entrepreneurs.Various examples in the real world economy justify the beliefs of the supporters of market system. Soviet Russia and various financial statement economies have inco rporated various reforms such as private ownership to reduce government guarantee and central planning. Even the