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.
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.