Answer:
Explanation:
The advantages of capitalism include:
Consumer choice - Individuals choose what to consume, and this choice leads to more competition and better products and services.
Efficiency of economics - Goods and services produced based on demand create incentives to cut costs and avoid waste.
Economic growth and expansion (which is possible in the capitalist economy system) - This increases the gross national product and leads to improved living standards.
The disadvantages of capitalism include:
A chance of a monopoly of power - Firms with monopoly power (when a specific person or enterprise is the only supplier of a particular commodity) can abuse their position by charging higher prices.
Inequality - A capitalist society is based on the right to pass wealth down to future generations. If a small group of people hold all the wealth and that wealth continues to be passed down to the same groups of people, inequality and social division occur.
Recession and unemployment - An economy based on the market of consumers and producers is invariably going to experience growth and decline.
