GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Income will tend to be unevenly distributed.
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People do not get goods of their choice.
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Men of Initiative and enterprise are not rewarded.
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Profits will tend to be low.
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Detailed explanation-1: -Since income is always somewhat unevenly distributed which give rise to economic divide. In market system resources are allocated with the objective of maximisation of individual profits which leads to further uneven distribution of income.
Detailed explanation-2: -The problem of allocation of resources arises due to scarcity of resources. Resources are limited and scared in nature. A choice is to be made which wants should be satisfied and which should be left and unsatisfied.
Detailed explanation-3: -The benefits of a market economy include increased efficiency, production, and innovation. The disadvantages of a market economy include monopolies, no government intervention, poor working conditions, and unemployment.
Detailed explanation-4: -Using markets for allocation of resources is generally efficient, better and cheaper. It can provide quicker means of business transactions between buyers and sellers. A market tends to create and maintain somewhat a balance between demand and supply so that there is no surplus and shortage of products.
Detailed explanation-5: -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.