ICSE Class 9 Answered

Advantages of Socialist economy

1.     Proper economic planning

2.     Social welfare of the people is maximized

3.     Minimises unemployment and no labour exploitation

Advantages of Capitalist economy

1.     Best quality of goods and services are produced because of existence of competition among firms

2.     Optimum utilization of resources

3.     Benefit to consumers as they have choice for goods and services with better quality and reasonable prices

Advantages of Mixed economy:

1.     Healthy competition

2.     Resources are efficiently allocated, this benefits the economy.

3.     Rapid economic development as both private and public sector work together.

Disadvantages of Socialist economy

1.     Less democratic         

2.     Gives rise to corruption

Disadvantages of Capitalist economy

1.     Gives rise to economic inequality

2.     May resort to producing luxury goods rather than necessities

3.     Firms tend to spend large amounts on promotion and selling expenses. This is a waste of valuable resources.

Disadvantages of Mixed economy

1.     Delay in economic decisions

2.     Corruption and black markets