Final answer:
In a market system, citizens may face risks such as unemployment and investment losses, which are typically absent in a command system due to government control. Governments can intervene in markets to create equity and security, addressing market failures and balancing the distribution of benefits and costs. Democratic systems, while seeking to reflect public interest, can face challenges when policies are influenced by self-interest.
Step-by-step explanation:
Two examples of risks that citizens may face in a market system are the risk of unemployment due to market fluctuations and the risk of losing investments due to changes in market demand. These risks are often mitigated in a command system because the government centrally plans and controls economic activities, thus providing more stability in terms of employment and investments. However, the trade-off in a command system may include lack of efficiency and incentives for innovation.
Government interference in the marketplace may be necessary to address market failures, externalities, and provide public goods, ensuring that citizens' needs are met and maintaining the stability of the economy. Policies aimed at creating equity and security can help balance the benefits and distribute the costs more fairly among different groups. This contribution to social welfare can lead to a more equitable society.
Democratic systems of government can sometimes enact policies that may not reflect the public good due to the pursuit of self-interest by political actors. Furthermore, while market economies encourage efficiency and growth through private property rights and incentives, they can also lead to problems such as inequality and poverty. Through measures like investing in early childhood education, governments can work to enhance both equity and efficiency, balancing the needs of a capitalist society.