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How can the government reduce the wealth gap in a mixed market economy?
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Under what conditions might government intervention in a market economy improve the economy's performance?
If there is a market failure, such as an externality or monopoly, government regulation might improve the well-being of society by promoting efficiency. If the distribution of income or wealth is considered to be unfair by society, government intervention might achieve a more equal distribution of economic well-being.
Match the following actions with the system in which the government performs them.?
Free-market system - Protecting property rights. Socialism - Providing equality of wealth. Planned economy - Making production decisions.
What is the book called the Wealth of Nations about?
Mainly, the Wealth of Nations is about the benefits of a free market economy and how the government should leave economic decisions to individual households and firms without regulation or intervention because it is argued to be more productive and beneficial for society.
what prohibited in a conmand economy?
In a command economy, which is controlled by a central, often authoritarian government, all forms of private ownership of property is prohibited. This is to avoid the nation's wealth accumulating in the hands of a few. Also prohibited is private investment and return.
What was the main idea behind economist Adam smiths book The Wealth of nations?
market economy is most profitable
Is a free-market economy the same as a market economy?
No. Both have a similarity in a basis in the marketplace. However, a free market is a special case in which there are no external controls on free economic action. Market economies may or may not have such influences, but are only contingent on some basis in the marketplace.For example, the United States is a market economy. But with the degree of government intervention, it is not a free market economy. The closest in the world today is Hong Kong, but a pure free market is as hard to find as pure communism.To expound further, this is a difficult question, as the common meanings of "free market", "market economy", and "true free market" are not what an Economist would define. That is, there is a disjoint between common usage and technical definition.From an Economist's standpoint, and Market Economy is any one which uses the principles of supply/demand and open trade to transact economic activity. As such, the world has come to the point where all countries use a Market Economy.However, inside the category of Market Economy are a large variation in the level of three factors: government regulation, government ownership of industry/infrastructure, and government social programs. An Economist would stay that having more than a very minimal level in each category would move that economy into the Mixed Market Economy category. As current governments have high levels of regulation, some minimal level of government ownership of industry/infrastructure, and at least moderate levels of social programs, it's hard to classify any current nation's economy as anything but a MME. That is, from the Economist's perspective, there are no Free Market economies, let alone True Free Market economies (except in places where there is no functioning government at all, such a places undergoing civil war or in a state of anarchy).To be clear, from an Economist's standpoint, a True Free Market Economy is a form of Market Economy where the government provides only two functions: a single legal common currency, and adjudication of contracts. A Free Market Economy is one where the government would add some lower level of regulation on allowable economic activity, such as pollution controls, or prohibition on certain abusive economic activities (i.e. market manipulation or abuse of monopoly status), but does not engage in either ownership of industry/infrastructure or any government-sponsored wealth transfer (e.g. social programs).So, really, we are splitting hairs. Given that all countries are running an MME (according to an Economist), when ordinary people say "true free market" or "free market", what they are generally referring to is those countries with lower levels of regulation/ownership/social welfare than other countries. In common usage, these terms are relative, not absolute.This can easily be answered without large paragraphs. A free-market economy is called Capitalism. A market economy... It isn't really a term. It is the Same as a Free-market economy. The people closest to this would be the Hong Kongese but even yet, they are what the U.S is: a Mixed Market Economy. Period.
What are synonyms of bad economy?
awful market terrible wealth dreadful country appalling nation dire financial system
Why do governments get involved in market economies?
A government may interfere in a market economy to change the allocation of resources in order to achieve a desired improvement in economic/social welfare. Reasons for this gov. interference for change include:to correct a market failure (like a depression/Stock Market crash)to improve the performance of the existing economyto achieve a more equitable distribution of income and wealth
What is the Great Depression causes?
The Stock Market crash, structural weakness of the economy, overproduction, misdistribution of wealth and an international crisis contributed to the Great Depression in the United States.
Which economic system says government should control all land and wealth?
in a Communist or command economy the government decides where people live what jobs they will preform and their income. thy also control all land and wealth.
What do Powhatans use their crops for?
surviving and trading. It inproved their wealth and economy surviving and trading. It inproved their wealth and economy
What is financial forecasting?
Financial forecasting is a prediction of the economy in the future based on current trends and other statistics such as national wealth and global market status.
