Question
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Which statement is a disadvantage of a market economy?
Unemployment rates can be high.
Businesses are told what to produce and how much to produce.
Very few options of goods and services are available.
There is little economic freedom.
Which statement is a disadvantage of a market economy?
Unemployment rates can be high.
Businesses are told what to produce and how much to produce.
Very few options of goods and services are available.
There is little economic freedom.
Answers
GPT-4o mini
The statement that represents a disadvantage of a market economy is:
**Unemployment rates can be high.**
In a market economy, fluctuations in demand can lead to periods of high unemployment as businesses adjust their workforce based on market needs. The other statements reflect characteristics of a command economy, not a market economy.
**Unemployment rates can be high.**
In a market economy, fluctuations in demand can lead to periods of high unemployment as businesses adjust their workforce based on market needs. The other statements reflect characteristics of a command economy, not a market economy.