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What is Market economy ? Advantages and Disadvantages of Market Economy

Check out Advantages and disadvantages of market economy (capitalism) given below. So let us find out some points on advantages and disadvantages to know more about market economy. This type of economy is nearly free fro governement interference, Economy is based on private ownership where individual control the production, distribution and sales of goods and services.

Some points on Advantages of market economy are:

  1. Allocation of resources without the government intervention.
  2. Producers can produce those products which can give more profit.
  3. In market economy manufacturer are able to make as much profit as possible.
  4. High degree of individual freedom is possible in market economy.
  5. Adjust to change based on consumers needs and wants.
  6. In market economy wide variety of goods and services is available.
  7. Many choices is possible hence high degree of consumer satisfaction in market economy.
  8. In market economy consumers can buy whatever they like in whatever amount they want.

Some points on Disadvantages of market economy are:

  1. Competition between producers is seen.
  2. Market economy is based on "ability to pay" and not on need.
  3. The manufacturers may only invest where more profit is expected.
  4. No military or any types of social sevices spending.
  5. In market economy there are occasionaly market failure
  6. In market economy it becomes difficult for government to provide adequate social services.
  7. High degree of uncertainty is seen, people may lose their jobs due to business failure.
  8. Market economy is a type of greed based system which puts profit before people
  9. Only those with money can participate in market economy

The advantages and disadvantages of traditional economy
The advantages and disadvantages of Mixed economy
The advantages and disadvantages of Planned economy

 

 

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What is Planned economy ? Advantages and Disadvantages of Planned Economy

Find out Advantages and disadvantages of planned economy (command economy) listed below. So let us check out points on advantages and disadvantages to know more about planned economy. This type of economy system is controlled by governement. In Planned economy, government decides how much is produces, what to produced, the methods of the production and the price of goods or services.

What is traditional economy ? Advantages and Disadvantages of Traditional Economy

Find some Advantages and Disadvantages of traditional economy. So let us check out information on advantages and disadvantages to know more about traditional economy.  In this type of economic system every person has a specific role in the society that is defined by its customs and traditions, traditional economy is based on simple industry and agriculture.

Advantages and Disadvantages of International Trade

Check out Advantages and Disadvantages of International Trade discussed below. So let us find out some information on advantages and disadvantages to know more about International Trade. It is a trade between nations in the form of imports as well as exports. International trade can be considered one of the important souce of revenue in the developing countries. Trade between countries is the exchage of both services and goods among the countries of the world economy.

Advantages and disadvantages of Advertisement in Points

Check out Advantages and Disadvantages of Advertisement in Points which are discussed below. So let us find out some points on advantages and disadvantages to know about advertisement.

Advantags of Advertisement in points are :

Advertisemet can be used to build brand Loyalty.

Advertisement creates ground for personal selling.

Advertisement helps to communicate information to the people.

It also helps to educate people.

Advertisement creates image for the products of services in the market.

It helps to build goodwill.