Some of the Advantages and Disadvantages of Market System are as follows. So let us check out some information on market system to know more about it.
Some Advantages of Market System are :
- Wider varieties of goods as well as services can be seen in market system
- Consumers have control over what gets produced.
- Economic freedom as well as economic growth is possible in market system.
- Market system automatically adjust and responds to the people's wants.
- In market system the competiton pushes business to be efficient.
- Generally market system relies on consumers as well as producers hence it does not required the government to appoint a team to take decisions.
- High efficiences in production, distribution and consumption is seen.
- In monopoly there is only one product and monopolies can be considered an extreme result of free market capitalism
Some Disadvantages of Market System are :
- Harmful goods or inferior products can be encourage due to free market.
- In market system production may lead to negative externalities.
- Market sytem may not produce certain services and goods.
- In market system unequal distribution of wealth and income is observed.
- In Market system, exploitaton of the economically poorer and less powerful is noted.
- Free market economy may sometimes increases the gap between the poor and the rich people.
- In market system production is not employed if it is not profitable.