Pros and Cons of the Free Market System
Pros
Cons
(1)
(2)
Encourages competition
and innovation
Prevents governments from
regulating dangerous
economic activities
Increases the variety of
available products
Creates large gaps between
the rich and poor
Which pair of statements best completes the table?
A. (1) Protects domestic industries; (2) Discourages foreign
investment
B. (1) Allows governments to establish tariffs: (2) Leads to economic
collectivization
C. (1) Promotes economic freedom; (2) Encourages risky economic
behaviors
O
D. (1) Reduces government economic interference; (2) Removes
incentives for productive work