Answer to Question #64903 in Other Economics for abbie
The united states is plotted on the continuum above indicating the nation's approximate position as a mixed but mostly free market economy. Assume policy changes in the USA and the country moves to the right a little. What benefits would the country gain by such a move? What problems would it face with such a move?
Once USA moves to the planned economy due to policy changes, it can obtain both some advantages and disadvantages.
Advantages: - Decreases the chances of monopoly; - Can help in regulating the gap between poor and rich.
Disadvantages: - Destroys entrepreneurship and innovation; - Can result in breaking the rights of human beings; - Problem of bureaucracy and delay of decisions is brought onto surface.