ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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advantage of market economic system
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disadvantage of market economic system
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Either A or B
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None of the above
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Detailed explanation-1: -Market economies have little government intervention, allowing private ownership to determine all business decisions concerning how a business is run. This type of economy leads to greater efficiency, productivity, and innovation.
Detailed explanation-2: -Marketing drives a consumer economy, promoting goods and services and targeting consumers most likely to become buyers. Higher sales for a business that employs successful marketing strategies translate into expansion, job creation, higher tax revenue for governments and, eventually, overall economic growth.
Detailed explanation-3: -Increased efficiency, productivity, fair competition, and innovation are key advantages of a market economy. On the other hand, the disadvantages of a market economy are intense competition, poor working conditions, environmental degradation, and economic disparities.
Detailed explanation-4: -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.