Question

What are Advantages and disadvantages of market economy

Answer 1

Market economy is that in which all the decisions are taken according to market forces and there is no control from govt.
Advantages of Market Economy​:

Having healthy competition and a system that encourages entrepreneurship is important in any market.Companies become creative in finding new products to sell or manufacture and less expensive ways to accomplish their goals.As companies grow due to market economy, foreign investors will begin to take an interest and help expand.Friendly competition between companies will encourage efficiency among employees to lower costs for success.                                                                                                                                                                                                                                                                                                                            Disadvantages of Market Economy:

Unemployment rates go up due to the overproduction of goods. Workers are not needed to keep producing goods and therefore companies cannot afford to keep works employed.Due to overproduction, industrial machinery will lay idle and therefore not producing a profit for the manufacturer.Investment priorties and wealth becomes distorted.The wealthy keep getting wealthier and the public sector such as public education, transportation routes and public health does not get the needed funds to keep evolving and providing for the public’s needs.