Market Economy : Advantages and Disadvantages

... Advantages and Disadvantages of Market Economy. Advantages Disadvantages * The market economy system does not need officials or civil servants to decide what should be produced. The gov't has no part to play in running the economy. So, there is less bureaucracy and red tape. * Production may be organized to meet the need of the rich people as producers can probably make larger profits from the production of luxury products. As a consequence, necessities for the poor may be neglected. * The market economy system responds quickly to people's wants. It becomes profitable to produce goods and services that people want and afford to buy. Resources are quickly sent to the market to produce to produce such goods and services. * It is not possible to produce some goods and services through price system. For e.g. it would be easy to change prices for street lighting, roads and defence. Everyone enjoys the benefit of

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