ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The ability to innovate and have freedom to what people can produce without the government telling them what to produce.
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The ability to innovate and invent anything a person wants
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The freedom of speech, right to bare arms, and freedom to vote
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There are no advantages
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Detailed explanation-1: -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-2: -Entrepreneurs are free to produce goods and services and sell them at a price they choose. Sellers are free to sell in markets of their choice. Consumers are free to buy any goods and services they choose. Workers are free to work wherever they choose.
Detailed explanation-3: -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.
Detailed explanation-4: -No government intervention in the economic system, including no legislative control over employment, production or pricing. Supply and demand drives production, the use of resources and sets prices. All goods and services are produced in the private sector. More items