Imagine you are a consultant who has been asked to summarize the strengths and weaknesses of...

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Economics

Imagine you are a consultant who has been asked to summarize thestrengths and weaknesses of Agoria, a nation with a pure marketeconomy.
Which of the following would you include in your report asweaknesses of Agoria's economy? Check all that apply.
- Occupational choices can be restricted.
- Firms have no incentive to produce the so-called public goods,such as national defense, because private firms cannot preventnonpayers from enjoying the benefits of public goods.
- People with no resources to sell could starve (income isdistributed unequally).
- The economy experiences economic fluctuations, which arealternating periods of expansions and recessions in their level ofeconomic activity, especially in employment and production.

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In a purely free market economy the law of supply and demand rather than a central governmentregulates production and labourThe profit motive drives all commerce and forces businesses to operate as efficiently as possible to avoid losing market share to competitors From the given See Answer

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