Question

What are the values in the political economy that we use to judge the merits of an economic system? Explain the meaning of each, and for each, give examples of an economic system that does not meet the criterion.

Answer 1

The values used to judge the merits of an economic system are
1.Economic efficiency:Due to the scarcity problem most of the economies tries to utilise their resources fully.

2.Economic Freedom:There are certain nations that limit the amount of income you can make and also forbid individuals to make certain purchases
Eg:Many people comes to America where you have more economic freedom.

3.Economic security and predictability:The government and economy should protect the people who are in state of unemployment,poverty,providing social security.

4.Economic Equity:How are we going to divide the economy ?what is fair?what is equity?all these questions are related to economic equity.