ECONOMICS (CBSE/UGC NET)

Previous
Next

ECONOMICS

ECONOMIC SYSTEMS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
An advantage of this economic system is:its high degree of individual freedom. People are free to spend their money on almost any good or service they choose. People also are free to decide where and when they want to work, or if they want to invest further in their own education and training. At the same time, producers are free to decide what they want to produce, whom they want to hire, which inputs they want to use, and the way they want to produce.
A
Traditional
B
Command
C
Capitalism/Market
D
socialist
Explanation: 

Detailed explanation-1: -Advantages of a market economy include a high degree of individual freedom and customer satisfaction, a variety of goods and services, the incentive to take care of private property, and decentralized decision making.

Detailed explanation-2: -Potential advantages of free market systems Competition drives innovation & invention bringing higher profits for businesses and better products for consumers. The profit motive stimulates investment which encourages economies of scale and lower prices for consumers.

Detailed explanation-3: -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-4: -A market economy has freedom of choice and free enterprise. Private entrepreneurs are free to get and use resources and use them to produce goods and services. They are free to sell these goods and services in markets of their choice.

There is 1 question to complete.
Previous
Next