ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Arguably, growth is highest under a market economic system. A market economy’s greatest downside is that it allows private entities to amass a lot of economic power, particularly those who own resources of great value.

Detailed explanation-2: -Overall, this study also-concluded that developing countries classified as market economies generally achieved greater economic success, both in international comparison and over time in the case of countries that had undergone political change.

Detailed explanation-3: -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-4: -There are no two economies that are alike. These economies, on the other hand, share many of the same characteristics and attributes. As a result, economists have been able to distinguish four basic types of economies: traditional, command, market, and mixed economies. Let’s take a closer look at each of these.