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Answer to Question #924 in Macroeconomics for Linda
Question #924
What are the advantages and disadvantages of Capitalist economy?
Expert's answer
Advantages:
Dynamic market is always orientated to consumer preferences, new trends. Due competition between each other companies have to cut the costs. Orientated to the profit, controlled by the supply-demand balance, the market is self-regulating stable system.
Disadvantages:
There is a social inequality, huge gap between the rich and the poor. With free market system the companies are allowed to provide monopoly policy in pricing and wage workers.
Dynamic market is always orientated to consumer preferences, new trends. Due competition between each other companies have to cut the costs. Orientated to the profit, controlled by the supply-demand balance, the market is self-regulating stable system.
Disadvantages:
There is a social inequality, huge gap between the rich and the poor. With free market system the companies are allowed to provide monopoly policy in pricing and wage workers.
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