Discuss the merits and limitatin of market economy
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Heya....
Market economy refers to free play of market forces demand and supply in term of that producers are free to select the type of production..
** Merits of market economy...
-- It increase the working and innovative efficiency of the producers...
-- It expands the consumer sorveginity....
-- It develops the infrastructure too...
** Demerits of market economy....
-- Prices are high of products so poor sections can't afford the products...
-- It creates the market competition so,, the small produces have to withdrawal the capital or to fight...
-- It causes lopsided growth because industries set up only in urban areas and rural areas left backward....
""""" Be Brainly....
Market economy refers to free play of market forces demand and supply in term of that producers are free to select the type of production..
** Merits of market economy...
-- It increase the working and innovative efficiency of the producers...
-- It expands the consumer sorveginity....
-- It develops the infrastructure too...
** Demerits of market economy....
-- Prices are high of products so poor sections can't afford the products...
-- It creates the market competition so,, the small produces have to withdrawal the capital or to fight...
-- It causes lopsided growth because industries set up only in urban areas and rural areas left backward....
""""" Be Brainly....
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By the way i 'have known to you by my friend tamash
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hi..
Answered by
6
Here is ur query...
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We live in a market economy where our well-being and quality of life are largely determined by how well we interact in it. In this lesson, you'll learn about the market economy including its advantages and disadvantages. A short quiz follows.
What Is a Market Economy?
A market economy is an economy where most resources are owned and controlled by individuals and are allocated through voluntary market transactions governed by the interaction of supply and demand.
People exchange resources, such as money, for other resources, such as goods or services, on a voluntary basis in the market. The value of the resources exchanged is based upon how scarce each resource is and how many people want the resource. If the supply of a resource is low, but the demand is high, the price will tend to be high. If the demand is low and the supply high, the price will tend to be low.
Economic growth and development in a market economy is determined by the relative risks and rewards (or profits) that particular economic activity presents to individuals. If risks are too high and rewards are too low, then certain activities probably will not be pursued.
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We live in a market economy where our well-being and quality of life are largely determined by how well we interact in it. In this lesson, you'll learn about the market economy including its advantages and disadvantages. A short quiz follows.
What Is a Market Economy?
A market economy is an economy where most resources are owned and controlled by individuals and are allocated through voluntary market transactions governed by the interaction of supply and demand.
People exchange resources, such as money, for other resources, such as goods or services, on a voluntary basis in the market. The value of the resources exchanged is based upon how scarce each resource is and how many people want the resource. If the supply of a resource is low, but the demand is high, the price will tend to be high. If the demand is low and the supply high, the price will tend to be low.
Economic growth and development in a market economy is determined by the relative risks and rewards (or profits) that particular economic activity presents to individuals. If risks are too high and rewards are too low, then certain activities probably will not be pursued.
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