Free Market Economy I A Level and IB Economics

In this short topic video we look at the key features, advantages and potential drawbacks of a free market economic system.
OVERVIEW
In a free market economy, markets allocate resources through the price mechanism. An increase in demand raises price and encourages businesses to use more resources into the production of that good or service. The quantity of products consumed by people depends on their income and income itself depends on the market value of an individual's work. In a free market economy there is a limited role for the government, indeed in a pure free market system, the government limits itself to protecting property rights of people and businesses using the legal system and protecting the value of money or the value of a currency.
Discover more from the Tutor2u website: www.tutor2u.ne...
#aqaeconomics #ibeconomics #edexceleconomics

[@tutor2u-official]

More resources on the price mechanism can be found here on the tutor2u website www.tutor2u.net/economics/topics/price-mechanism

[@user-dead]

In today's caie As economics paper 2 a 12 marker asked for desirablity of transition from a planned economy to an economy where most of the resources are allocated by market forces
Does this question refers to mixed economy or free market economy???

[@Ashgrey0]

Concise, bulleted and to the point. Thank you good sir🥸

[@clexo6542]

For some reason learning vids only have a few comments

[@kingj7606]

Aka the best system to promote prosperity

[@treygc3291]

Hah

[@sterling7178]

​@gespilk And the "rule of law" is indiscriminate right? No bias or imperfections? The free market is far better. Economics shows this repeatedly. Those left behind...the lazy...Need to leave and find socialist strongholds. If you fail at competition because you are too stupid or lazy, its time to immigrate. You're holding America back...

[@michellesimbanegavi744]

@@sterling7178 ummmmmm..............

[@faizanfarooqi5021]

Ahhh Thank you so much sir ❤️ May God bless you

[@tutor2u-official]

So nice of you

[@faizanfarooqi5021]

Sir you were one of my teachers for A levels economics, Alhumdulillah I got B grade, and now I am continuing my career with Chartered Accountancy! Thank you so much for you part ❤️

[@arifarkan5149]

I sell sea shells on the sea shore

[@tutor2u-official]

A great job to have but difficult to say what you do!

[@g2teggify]

Hi I love your vidios

[@harrietread1749]

Thank you Sir

[@tutor2u-official]

Most welcome Harriet!

[@cchhii961]

Thanks

[@tutor2u-official]

Welcome

[@thevirieproject3719]

The greater the economic freedom, the better quality of life. Take a look at Singapore, New Zealand, Australia.. Then look at Venezuela, North Korea, Cuba. Not a coincidence.

[@sterling7178]

@gespilk Exactly. If the government steals this wealth and gives it to others, is it ever really yours?

[@sterling7178]

gespilk Of course the majority are losing money due to government. The housing bubble of 09. The student debt crisis. Hell, even minimum wage. You think these issues are making Americans wealthier?

[@BobLoblaw23]

Why do you overlook the sanctions and embargoes meant to stifle their economy? Not very free market of the government to get involved in such a way. Don’t you think?

[@goonsquad8258]

Ahh yes, just look at the prosperity in the Republic of the Congo, Bulgaria, and Liberia! Free market systems always lead to great outcomes, right?

[@clexo6542]

Comment 4

[@hi-pg9bp]

Thanks daddy

[@tutor2u-official]

😏

[@reasonerenlightened2456]

@@tutor2u-official
You, God and All scientists do not know that the concentration of Wealth in the hands of an Owner happens in two ways:
1) The free market, no matter how much it is regulated, leads inevitably to extreme levels of Wealth concentration.
2) The exploitation of the Employee by the Owner, also, leads inevitably to extreme levels of Wealth concentration.
The only sustainable solution is perpetual redistribution of some Wealth from places of Extreme concentration (regardless if private or public) to every citizen evenly. A Repeated Redistribution is the only way towards a more equal society because nobody can stop the exploitation at the work place and nobody can stop the concentration of Wealth by free trade.
1) To sustain a free market You must tax the extreme concentration of Wealth and then give it evenly to everybody , again and again, so that the market can have customers (i.e. humans with money to spend).
2) Do not let foreign entities extract profit from our markets. We must extract profits from their markets.