Cite advantages and disadvantages of market economy.?

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Cite advantages and disadvantages of market economy.?

Explain your answers and cite your sources please.

2006-11-27 16:05:26 · 2 answers · asked by rain021 2 in Social Science ➔ Economics

2 answers

disadvantages - none

advantages - people get choice, economic growth is maximised, freedom to work at what you choose to become good at. System is flexible and adapts well to changes in the external environment such as a rise in the price of oil (or tea or anything else).

2006-12-01 03:11:35 · answer #1 · answered by MBK 7 · 0⤊ 0⤋

according to the first welfare theorem, a market economy leads to a Pareto optimal allocation of goods. This means without interference welfare is maximised.

2006-11-28 03:59:06 · answer #2 · answered by Dirk N 3 · 0⤊ 0⤋