In a major restructuring of its state-directed agricultural sector, the government of Uzbekistan has abolished mandatory crop quotas, enabling independent farmers to decide which crops to cultivate and how to distribute their produce. Supporters of free-market principles argue that giving farmers autonomy will incentivize productivity gains, drive down consumer food prices, and foster local innovation.
With reference to the information provided, explain one advantage of a free market economy.
85 exam-style questions on Edexcel A A Level Economics 1.1 Nature of economics, covering 1.1.1 Economics as a social science, 1.1.2 Positive and normative economic statements, 1.1.3 The economic problem, 1.1.4 Production possibility frontiers, 1.1.5 Specialisation and the division of labour, and 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.