Answer to Question #924 in Macroeconomics for Linda
What are the advantages and disadvantages of Capitalist economy?
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.