ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Pillars of capitalism In free markets, also called laissez-faire economies, markets operate with little or no regulation.

Detailed explanation-3: -Centrally planned economies are different from market economies where large numbers of individual consumers and profit-seeking private firms operate most or all of the economy. Central planning allows the government to marshal society’s resources for goals that might not be achieved by market forces alone.

Detailed explanation-4: -Laissez-faire economics is a theory that says the government should not intervene in the economy except to protect individuals’ inalienable rights. In other words, let the market do its own thing. If left alone, the laws of supply and demand will efficiently direct the production of goods and services.