Question

temporary problems could be taken care of by market mechanism

Answer 1

In economics, the market mechanism is a mechanism by which the use of money exchanged by buyers and sellers with an open and understood system of value and time trade-offs in a market tends to optimize distribution of goods and services in at least some ways. The mechanism can exist in free markets or in captive or controlling markets that seek to use supply and demand, or some other form of charging for scarcity, to choose among production possibilities. In a free market economy, all the resources are allocated by the private sector (individuals, households, and groups of individuals); in a planned economy, all the resources are owned by the public sector (local and central government); and, in a mixed economy, some resources are owned by both sectors, private and public. In reality the first two are mostly theoretical and the third is common. Resources are allocated according to the forces of supply and demand, and this is known as market failure