Discuss below in 500 words each and use APA format:
1. What is a free market system? What are the basic assumptions that a free market system is based on? What are the erroneous assumptions that the free market is based on? Why are they thought to be erroneous?
Text book reference:
Weimer, D. L., & Vining, A. R. (2011). Policy analysis: Concepts and practice (5th ed.). New York, NY: Longman.
2. Explain how the Pareto-efficient allocation of goods also maximizes social surplus. Please provide at least one example to justify your response.
Text book reference:
Weimer, D. L., & Vining, A. R. (2011). Policy analysis: Concepts and practice (5th ed.). New York, NY: Longman.