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Give an example of government intervention being appropriate in a free market?
Wiki User
∙ 9y ago
Government intervention is appropriate when corporations misuse their power. For instance, the government intervened when mortgage companies were creating bad mortgages.
Wiki User
∙ 9y ago
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Why would the government interfere with price mechanism?
Government intervention in the market mostly the incentives that consumers and producers have can be changed by government intervention in markets. For example a change in relative prices brought about by the introduction of government subsidies and taxation. sdm matelo
Why does even a free market economy need some government intervention?
Even a free market economy needs government intervention to provide for things that the marketplace does not address.
Why is government intervention sometimes necessary in a free market?
d nuts
Laissez-faire economics opposes government intervention in?
The free market.
System that combines the free market with some government intervention?
Market Economy A market economy is a system in which decisions on production and consumption of goods and services are based entirely on exchange, or trade; The answer to this is Mixed Economy.A mixed economy is a system that combines the free market with some government intervention.
What market has no government intervention?
Somalia
Why would the government interfere with price mechanism?
Government intervention in the market mostly the incentives that consumers and producers have can be changed by government intervention in markets. For example a change in relative prices brought about by the introduction of government subsidies and taxation. sdm matelo
Why does even a free market economy need some government intervention?
Even a free market economy needs government intervention to provide for things that the marketplace does not address.
What is a government intervention in a market that affects the production of a good?
Regulation
Why is government intervention sometimes necessary in a free market?
d nuts
Laissez-faire economics opposes government intervention in?
The free market.
System that combines the free market with some government intervention?
Market Economy A market economy is a system in which decisions on production and consumption of goods and services are based entirely on exchange, or trade; The answer to this is Mixed Economy.A mixed economy is a system that combines the free market with some government intervention.
Does the government intervention in the market can cause the deadweight loss?
Yes, there is a significant amount of a dead weight loss, this is simply because the government has an opportunity cost. Intervention by the government must be very strategic or else.
A model economic system in which all economic desicions are left to the market?
A popular model is the free market, where the market has no government intervention or regulation.
Which is not a result of regulation or government intervention in a market?
lowering the costs of production of a good (novanet)
Why does even a free enterprise market economy need some government intervention?
Even a free market economy needs government intervention to provide for things that the marketplace does not address.
What are the advantages and disadvantages of the government intervention in the free market?
One primary advantage of government intervention is to market failure just like when the marginal social cost is greater than the marginal social benefit or vise versa. One disadvantage is that the market may become dependent on subsidies if they are used to correct failure.
