ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Command economy advantages include low levels of inequality and unemployment and the common objective of replacing profit with equality as the primary incentive of production. Disadvantages of command economies include lack of competition, which can lead to lack of innovation, and lack of efficiency.

Detailed explanation-2: -Advantages may include the following: Provides incentive for innovative entrepreneurship. Gives consumers a choice in goods, services and purchase prices. Creates market competition for resources, resulting in quality offerings and efficient use of resources to produce goods.

Detailed explanation-3: -Advantages of Inequality By rewarding hard work, there will be a boost to productivity leading to a higher national output – so everyone can benefit. Entrepreneurs require rewards. Inequality is necessary to encourage entrepreneurs to take risks and set up a new business.

Detailed explanation-4: -The benefits of a market economy include increased efficiency, production, and innovation. The disadvantages of a market economy include monopolies, no government intervention, poor working conditions, and unemployment.

Detailed explanation-5: -Efficient Allocation of Resources. The free market allows for supply, demand, and prices to all work in tandem. Competition. Innovation and Economic Growth. More Choice. Absence of Red Tape.