ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Market economies create a huge gap between the wealthy and the poor.
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In a market economy, innovation and competition in the marketplace are encouraged.
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Competition in the marketplace
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Supply and demand drive economic decisions in a free enterprise system.
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Detailed explanation-1: -The disadvantages of a market economy include monopolies, no government intervention, poor working conditions, and unemployment.
Detailed explanation-2: -Both have a strong central government that controls businesses. What is a DISADVANTAGE of a market economy compared with a command economy? Market economies create a huge gap between the wealthy and the poor.
Detailed explanation-3: –Disadvantages of a Market economy include the inability of the market to meet every person’s basic needs. Markets also do an inadequate job of providing some highly valued services such as justice, education, and health care.
Detailed explanation-4: -The rate of economic growth is high in the market economy, as compared to the command economy, which can be seen in their standard of living. When it comes to income distribution, in a market economy, there is an unequal distribution of income while the command economy has an equal distribution of income.