Tag: disadvantages
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Disadvantages of monopoly
Disadvantages of monopoly Inefficiency in production Does not cater to the demands of consumers May exploit the consumers as it is the only business providing the product May charge higher price by decreasing the supply
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Advantages of monopoly
Advantages of monopoly Lower costs Save money, by not producing wasteful duplication Spend money on research Offer lower price to the consumer
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Disadvantages of specialisation for an individual
Disadvantages of specialisation for an individual Job dissatisfaction Risk of unemployment No flexibility
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Advantages of Mixed economy
Advantages of mixed system Choice for consumers Government providing essential services Example: Postal services, army, street lighting
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Mixed economy
Mixed system An economy where both private sector and government operate and play a key role It is also referred to as an economy which is the sum of the advantages of market and planned system
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Disadvantages of Planned economy
Disadvantages of Planned system Lack of efficiency No choice for the consumers
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Advantages of Planned economy
Advantages of Planned system Wasteful competition is avoided Goods and services like health and education are provided Even distribution of income
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Disadvantages of Market economy
Disadvantages of market system The profitable goods and services are produced, people do not get the products they need (education, health). Mistreatment of workers Creates unemployment Huge gap between rich and poor Big firms control the whole market
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Advantages of market economy
Advantages of market system Price determination by supply and demand Choice is available in the market There is efficiency Buyers are free to buy any product Low prices due to efficiency
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Free market system
Market system Market economy is an economy where resources are allocated by the price mechanism, the consumers determines what is produced. Example: United States