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- Some disadvantages of a market economy are12345:
- Income inequality, as those with more resources are able to accumulate more wealth
- Lack of access to basic services and public goods for some individuals, as they may not be profitable for private firms to produce
- Short-term focus, boom and bust cycles, and cyclical unemployment, as the market is driven by supply and demand fluctuations
- Market imperfections, failures, and externalities, such as monopoly, unfair competition, pollution, and overuse of natural resources
- Poorer work conditions and inadequate safety nets, as the market does not consider the social welfare of workers and consumers
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.The main advantages of market economies are competition, freedom, flexibility, innovation, and efficiency, while the main disadvantages are market imperfections, missing public goods, market failures, and income inequality.www.economicsonline.co.uk/definitions/disadvanta…The main Disadvantages of Market Economy include income inequality, the lack of access to basic services for some individuals, short-term focus, boom and bust cycles, the potential for monopoly power, market failures, cyclical unemployment, inadequate safety nets, financial crises, and underinvestment in public goods.collegesnotes.com/disadvantages-of-market-econo…While a market economy has many advantages, such as fostering innovation, variety, and individual choice, it also has disadvantages, such as a tendency for an inequitable distribution of wealth, poorer work conditions, and environmental degradation.teacherscollegesj.org/what-are-the-disadvantages-…A market economic system can lead to income inequality as those with more resources are able to accumulate more wealth. It also does not provide for public goods and services that may not be profitable for private firms to produce. Additionally, it may lead to externalities such as pollution and overuse of natural resources.www.toolazytostudy.com/economics-notes-free/ad…The main disadvantages of a market economy are: It does not consider the most vulnerable sectors, as people with no sufficient capital, resources or knowledge do not usually have access to the market. There may be cases of monopoly and unfair competition.humanidades.com/en/market-economy/ - People also ask
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