In a landmark departure from its state-monopoly model, the Ethiopian government has liberalized its telecommunications sector, ending the exclusive dominance of state-owned Ethio Telecom. By licensing private multinational consortia, the state now permits independent operators to establish their own cellular networks and launch mobile financial services. Proponents of market-led reforms argue that this transition will accelerate high-speed network expansion in remote regions, lower data tariffs through competition, and spur localized mobile-app innovation.
With reference to the information provided, explain one advantage of a free market economy.
22 exam-style questions on Edexcel A A Level Economics 1.1.6 Free market economies, mixed economy and command economy. Each one has a worked solution and a mark scheme showing where the marks go.