Give two examples of risks that citizens may face in a market system. Why are these risks something that would not be present in a command system?

In a market economy system the laws of supply and demand dictate the production of goods and services. Demand is made up of purchases by consumers, businesses, and the government itself. The key characteristic of a market economy is competition. Therefore, a market economy has no inherent system to care for those who are at an inherent competitive disadvantage. That includes the elderly, children, and people with mental or physical disabilities. Some examples of risks in a market economy would be someone needing to pay for a very expensive medical bill or someone producing luxury yachts in a factory for some while he or some members from his family starve or are homeless.

This is different from a command economy where some advantages include low levels of inequality and unemployment as well as the common good replacing profit as the primary incentive of production therefore welfare in a command government would cover the medical bills. Think ¨equality¨, so in the other scenario even though the person may be employed and not starving, he or she would not be free to choose the profession nor the wage.

One of the risks that citizens can face in a market system is that those who participate in a market only take into account the cost and benefits that fall on themselves. Obviously, most of the individual participants also consider, the costs and benefits that fall on the members of their families, but in general, the participants in a market, pursuing what is conventionally known as their own interest or benefit.

Another risk is that there may be problems in terms of efficiency and therefore, the appearence of externalities or market failures: situations of social injustice, pollution or exclusion that lead the public sector to intervene. As also increase in prices.

These risks are something that would not be present in a command system because a command system has the capacity to serve collectively rather than meet individual needs. In this type of system the individual search for wealth is replaced by a concerted effort of all economic channels to imprive society as a whole.