Merits and demerits of the capitalist economy: Merits:
1. Increasing production and efficiency.
2. Optimum utilization of resources.
3. Technical evelopment.
4. Increase in capital formation.
5. Economic freedom.
6. Rise in living standard.
Demerits:
1. Decline of moral values.
2. Problems of unemployment, poverty, starvation, exploitation, inflation etc.
3. Increase in regional disparities.
4. Disparities of income and property,
5. Unlimited consumption.
6. Concentration of Economic power.
