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Chapter 2 lays out the theory of market capitalism, which is the world’s increasingly dominant system. It discusses the efficiency advantages of market capitalism as well as how these may not be achieved in a purely laissez-faire setting. The kinds of government interventions that might ameliorate these problems are presented.
For good reason, everyone has tended to focus on the huge health and economic costs associated with the COVID-19 pandemic. However, the press and other sources have occasionally noted some positive outcomes from our recent experience — for example, temporary reductions in road congestion and air pollution. Accordingly, our textbook authors note throughout Chapter 2 that positive changes can arise from shocks to the economy. In your opinion, what are the two most important positive impacts that the pandemic may have for the global economy?
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