ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Traditional
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Command
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Capitalism/Market
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socialist
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Detailed explanation-1: -Some disadvantages could include: Creates scarcity due to an inability to plan for individual needs. Forces government rationing due to inability to calculate demand on set prices. Eliminates market competition, resulting in a lack of innovation and advancement.
Detailed explanation-2: -Disadvantages include the loss of individual freedom to choose, the production of low-quality goods, a large decision-making bureaucracy, and lack of individual initiative.
Detailed explanation-3: -Disadvantages of Mixed Economy Problems of corruption, Kickbacks. read more, black market, nepotism are prevalent in a mixed economy. Excessive state control in a mixed economy hinders the growth of private sector industries.
Detailed explanation-4: -Capitalism leads to inequalities in income. In capitalism, firms can get monopoly over workers and consumers. A high profit-earning motive of a capitalist economy is to use resources in such a way that it leads to environmental problems by destroying the natural balance.