2441183
Description
Mind Map by 09serukenyahol, updated more than 1 year ago
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Created by 09serukenyahol
over 9 years ago
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Cons for free market economy
- Less advantaged people (orphans, sick, long-term
unemployed will not be able to provide themselves with
fundamental care
- Resources could possibly dry up/ be used to
quickly
- not benefitial for the environment
- not benefitial for the environment
- Excessive power for large firms could lead to them dominating industries
- loss of efficiency
- loss of efficiency
- Demerit goods (things that are bad for people e.g drugs/ child prostitution) will be
overprovided, driven by high prices and thus a high profit
motive
- OPPOSITE: Merit goods (things that are good for people e.g. education/health care) are underprovided, since they are
only produced for those who can afford them and not for all
- OPPOSITE: Merit goods (things that are good for people e.g. education/health care) are underprovided, since they are
only produced for those who can afford them and not for all
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