BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Income will tend to be unevenly distributed.
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People do not get goods of their choice.
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Men of Initiative and enterprise are not rewarded.
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Profits will tend to be low.
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Detailed explanation-1: -Since income is always somewhat unevenly distributed which give rise to economic divide. In market system resources are allocated with the objective of maximisation of individual profits which leads to further uneven distribution of income.
Detailed explanation-2: -Benefits of a market economy include increased efficiency, production, and innovation. Disadvantages include monopolies, no government intervention, poor working conditions, and unemployment.
Detailed explanation-3: -Increased efficiency, productivity, fair competition, and innovation are key advantages of a market economy. On the other hand, the disadvantages of a market economy are intense competition, poor working conditions, environmental degradation, and economic disparities.
Detailed explanation-4: -The problem of allocation of resources arises due to scarcity of resources. Resources are limited and scared in nature. A choice is to be made which wants should be satisfied and which should be left and unsatisfied.
Detailed explanation-5: -Markets use prices as signals to allocate resources to their highest valued uses. Consumers will pay higher prices for goods and services that they value more highly. Producers will devote more resources to the production of goods and services that have higher prices, other things being equal.