ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Some individuals needs may not be meet.
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Little government intervention.
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Great variety of goods or services.
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Price are determined by market forces (supply and demand).
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Detailed explanation-1: -One disadvantage of a free market economy is that some producers are driven exclusively by their profit motives. Even though the primary goal of any business is to generate profit, such an objective should not be prioritized over the needs of workers and consumers.
Detailed explanation-2: -The disadvantages of a market economy include monopolies, no government intervention, poor working conditions, and unemployment.
Detailed explanation-3: -There are some disadvantages also associated with a market system. Unsupervised management could result in a loss of profit. Demerit goods and serviced will be available to the consumers. Prices could increase thus causing demand to fall.
Detailed explanation-4: –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-5: -Market economies tend to produce inferior goods and services. It harms the environment. Outsourcing is frequent in a market economy. Commodity prices typically rise in a market economy. Economy imbalances occur frequently within a market economy. 24-Jul-2017