Respuesta :
One disadvantage of free market society is the birth and existence of underground smuggling in which not qualified and products with wrong ingredients make it pass to countries in which some of its people are uneducated enough not to understand what they are consuming.
The major disadvantage of the free market is the uneven distribution of wealth.
Further Explanation:
Free market:
The free market refers to the market where government intervention is minimum or zero. The exchange of goods and services is held voluntarily based on the demand and supply of the product. The main characteristic of the free market is that there is no transaction condition. All the transactions are carried out between the buyer and seller without any condition. Laissez-faire capitalism and voluntary socialism are examples of the free market.
Disadvantage of the free market:
The major disadvantage of the free market is the uneven spread of wealth. Without government intervention, only a handful number of buyers may take over the market and creates a cartel and manipulate the price of the product. It would lead to a higher profit for handful sellers and very little margin for other sellers. It will result in the uneven spread of wealth where a very few sellers would earn most of the profit.
Thus, the major disadvantage of the free market is the uneven distribution of wealth.
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Answer Details:
Grade: Senior school
Chapter: Free-Market
Subject: Economics
Keywords: one, disadvantage, our, free, market, society, government, intervention, characteristic, voluntarily
