Free to Choose: A Personal Statement | Objects, Setting & Important Places

Free to Choose: A Personal Statement Objects/Places

United States

The United States economy is used as an example of a capitalist or market economy. It is based on the free exchange among market participants without coercion. All market participants acting in their own best interest do what is best for the economy and all benefit. Information between different market participants is conveyed through the market by prices.

The Soviet Union

The Soviet economy is represents a planned economy. The economy doesn't function on the basis of free exchange among market participants. It doesn't use markets and prices to convey information. A planning authority determines the outputs and inputs without the use of markets.

China

China is another example of a planned economy. China was underdeveloped and backward at the time of the Communist revolution. Economic planning resulted in industrialization and some modernization.

Israel

The Israeli economy is a planned economy with much government intervention. It is a small nation with a heavy reliance on...
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