What Are The Advantages And Disadvantages Of A Free Economy?
In Tanzania we have mixed economy. Now I want to know if its better to have a free economy system.
Guest
asked 2 years ago
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The advantage of free economy is that consumers can get benefits of enjoying international brands with low prices but the main disadvantage of free economy is to meet foreign competition in the market.
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OR the value of the lower is brought up a little, and the other value is dropped a lot!
So now the Value of the US dollar is dropping like a rock, and it takes far more dollars to do the same thing!
And the worlds economy is based on the US dollar to a very high level!
So now this chain reaction is spreading to the world, and the very poor countries will have to look else where for aid!
So this new approach will be felt by those VERY poor Starving People the MOST!
The lowest link on the chain WILL PAY THE MOST!
Logic101
So now the Value of the US dollar is dropping like a rock, and it takes far more dollars to do the same thing!
And the worlds economy is based on the US dollar to a very high level!
So now this chain reaction is spreading to the world, and the very poor countries will have to look else where for aid!
So this new approach will be felt by those VERY poor Starving People the MOST!
The lowest link on the chain WILL PAY THE MOST!
Logic101
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Advantages of free economy
1) The aim of the entrepreneurs is earning more and more profit which increases efficiency
2) Variety of goods/services are produces so consumers are free to choose what they want to buy
3) Neither shortage nor surplus of goods/services is faced so resources are not wasted
4) Competition faced by the businesses along with the forces of demand and supply determines the prices of products, keeping them low
5) New businesses are encouraged by the profits
Disadvantages of free economy
1) No government-provided services, eg health, education, etc are not there so only those who can afford to buy these services will benefit from them, thus the gap between the rich and the poor increases.
2) Non-profitable goods/services are not produced
3) Since the government has little control and planning, economic booms or recessions may be faced
4) Businesses may be encouraged to create monopolies. They may increase their prices which will limit the choice of the consumers
1) The aim of the entrepreneurs is earning more and more profit which increases efficiency
2) Variety of goods/services are produces so consumers are free to choose what they want to buy
3) Neither shortage nor surplus of goods/services is faced so resources are not wasted
4) Competition faced by the businesses along with the forces of demand and supply determines the prices of products, keeping them low
5) New businesses are encouraged by the profits
Disadvantages of free economy
1) No government-provided services, eg health, education, etc are not there so only those who can afford to buy these services will benefit from them, thus the gap between the rich and the poor increases.
2) Non-profitable goods/services are not produced
3) Since the government has little control and planning, economic booms or recessions may be faced
4) Businesses may be encouraged to create monopolies. They may increase their prices which will limit the choice of the consumers
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Guest
answered 3 months ago
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