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Discuss whether the price mechanism is an effective way to solve the basic economic problem?
Wiki User
∙ 9y ago
Price mechanism is an effective way to solve the basic economic problem. The price of a product is what will determine the demand and this will influence the production output which directly affects the economy.
Wiki User
∙ 9y ago
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Is the price mechanism an effective way to the solve the basic economic problem?
The price mechanism is a feature of the free market and operates through demand and supply and the self interest of individuals, government action is minimised. This has the benefits of incentive, efficiency, innovation, choice and consumer sovereignty. Against this there may be market failure including inequality, lack of public and merit goods, externalities and instability. Depending upon the degree of failure the mechanism may be more or less effective. The price mechanism does not solve the basic economic problem but is thought to be effective when operating efficiently.
How can the basic economic problem solved in a capitalist economy?
It is the price mechanism
The structure of nigeria's socio economic system and the problems and goals of the society?
as a nation buffeted with a barrage of socio-economic problem, briefly discuss one of those problem and the veiw to solv the problem
How are economic questions answered in a command economy?
discuss the basic economic problem?
How market forces help to solve basic economic problems?
how does the market mechanism solve the basic problem of free market economy?
Is the price mechanism an effective way to the solve the basic economic problem?
The price mechanism is a feature of the free market and operates through demand and supply and the self interest of individuals, government action is minimised. This has the benefits of incentive, efficiency, innovation, choice and consumer sovereignty. Against this there may be market failure including inequality, lack of public and merit goods, externalities and instability. Depending upon the degree of failure the mechanism may be more or less effective. The price mechanism does not solve the basic economic problem but is thought to be effective when operating efficiently.
How can the basic economic problem solved in a capitalist?
It is the price mechanism
How can the basic economic problem solved in a capitalist economy?
It is the price mechanism
The structure of nigeria's socio economic system and the problems and goals of the society?
as a nation buffeted with a barrage of socio-economic problem, briefly discuss one of those problem and the veiw to solv the problem
How are economic questions answered in a command economy?
discuss the basic economic problem?
How market forces help to solve basic economic problems?
how does the market mechanism solve the basic problem of free market economy?
Define the economic problem?
define economic problem
Is a divorce decree still effective if the names were spelled wrong?
Yes. Typographical errors would not cancel a divorce decree. You should visit the court and discuss the problem with the clerk.
Is price mechanism is an effective way to solve the basic economic problem?
yes, because the average consumer will opt an item which his pocket permits. lot of companies spend more money on packs/tins/containers, to attract consumer. if you reduce production cost on it and brand it as economy income group (which is strange, not yet introduced ) consumers will get used to it.
What is economic consequences?
the consequences of the economic problem
What is the Primary mechanism of homeostatic regulation?
The body's primary mechanism of homeostatic regulation is negative feedback. This mechanism recognizes the problem, identifies the correction, and changes the variable.
What do you know about congested streets?
I want to discuss this problem
