00:01
Hey everyone, today we're answering problem 27 from chapter one of the textbook, which asks us to consider why most countries kind of have a hybrid of market and command economies.
00:13
So let's think about it from the market economy side first and then the command economy side second.
00:19
So what are market economies good for and bad for? that should be the first step you take in solving this problem.
00:26
Well, market economies are good at raising standards of living.
00:35
Remember, these market economies are decentralized, and they involve private enterprise, which are very good at raising standards of living because it's private.
00:46
All right, so that is the benefit, but let's consider, you know, the drawback of market economies.
00:53
So they do have some failings markets in general, and these, you know, issues can be resolved with the central direction.
01:17
So for instance, if you think about the problem of pollution, markets will generally not handle this very well...