Question

Jim says, "I think it's a little like when you have a cold or the flu. You don't need to see a doctor. In time, your body heals itself. That's sort of the way the economy works too. We don't really need government coming to our rescue every time the economy gets a cold." According to Jim, how does the economy work? (Be sure to read the chapter prior to attempting this discussion question).

Answer 1

Answer and explanation:

Jim possibly believes in self-regulating economies or market economies. These economies are characterized by prices being set by natural forces or the interaction of consumers and producers to determine supply and demand. The intervention of a central planner or the government is not desirable in this type of market. Private property is prioritized.