Market Failure is a situation when industries get closed, Already produced goods is stored, the demand of the commodities almost decreased, share markets are also closed, the problem of unemployment increased in the country and the economy became totally disturbed. In 1929 that type of marked failure had taken place.
FREE MARKET: This is the type of market in which commodities are sold are purchased without the intervention of the government. It mean that if buyers and sellers are free to purchase or sales commodities at their terms. They are free to production any amount of the product and at any price.
There is no interference of Govt. in free market so the problem of black marketing takes place. Capital class exploit the weaker section so the capital class rich day per day and the poor class weak day per day, purchasing power of customer reduced day by day because of higher prices. Produced run the market as per their desire for earning maximum profit. The business of money lords grow and the economy becomes weak day by day. Corruption less supply of product in the market, maximum profit, monopoly are the main weakness of the free market economy.
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