Cons for free market economy

09serukenyahol
Mind Map by 09serukenyahol, updated more than 1 year ago
09serukenyahol
Created by 09serukenyahol about 5 years ago
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International Baccalaureate Economics (The foundations of economics - micro ) Mind Map on Cons for free market economy, created by 09serukenyahol on 04/06/2015.

Resource summary

Cons for free market economy
1 Less advantaged people (orphans, sick, long-term unemployed will not be able to provide themselves with fundamental care
2 Resources could possibly dry up/ be used to quickly
2.1 not benefitial for the environment
3 Excessive power for large firms could lead to them dominating industries
3.1 loss of efficiency
4 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
4.1 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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