A market economy is an economy in which supply and demand drive economic decisions, such as the production of goods and services, investments, pricing, and distribution. A market economy promotes free competition among market participants.
The advantages of a market economy include increased efficiency, productivity, and innovation. In a truly free market, all resources are owned by individuals, and the decisions about how to allocate such resources are made by those individuals rather than governing bodies.
The disadvantage of a market economy is that it places the transactions which occur in a higher regard than the welfare of the individuals in the society. Businesses can find the highest quality worker that will perform duties with the lowest pay in the worst possible working conditions.
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Answer:
A market economy is an economy in which supply and demand drive economic decisions, such as the production of goods and services, investments, pricing, and distribution. A market economy promotes free competition among market participants.
The advantages of a market economy include increased efficiency, productivity, and innovation. In a truly free market, all resources are owned by individuals, and the decisions about how to allocate such resources are made by those individuals rather than governing bodies.
The disadvantage of a market economy is that it places the transactions which occur in a higher regard than the welfare of the individuals in the society. Businesses can find the highest quality worker that will perform duties with the lowest pay in the worst possible working conditions.
Explanation:
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