ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The main advantage of a traditional economy is that the answers to WHAT, HOW, and FOR WHOM to produce are determined by customs and tradition. The main disadvantage of a traditional economy is that it tends to discourage new ideas and new ways of doing things.

Detailed explanation-2: -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-3: -Some of the cons include a lack of efficient resource allocation, lack of innovation, and the needs/preferences of society may be ignored due to poor planning.

Detailed explanation-4: -However, there are some disadvantages to the mixed economy. One disadvantage is that the government cannot control the economy completely. Another disadvantage is that the government does not provide enough funding for social programs. In a mixed economy, the government has both public and private sectors.

Detailed explanation-5: -Lack of competition and associated efficiency. Lack of freedom. Lack of innovation. Lack of incentive for hard work. Increased chance of corruption.