answersLogoWhite

0


Best Answer

The Government has to intervene when the price of essential commodities go up beyond the reach of the common people. It has to take remedial measures like reducing bank interest rate when the inflation is at its peak.Devaluation of currency, printing extra currency notes are the other measures to check inflation to an affordable level. When the black marketeers make a mockery of the marketing system, when unscrupulous traders do not hesitate to mix spurious items in baby food and medicine, it is obvious that the Government cannot remain a silent spectator and has to intervene.

User Avatar

Wiki User

∙ 12y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Why does the government intervenes in the operation of a market system?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

An economic system in which a free market prevails?

Exists only i n economics textbooks, not the real world. the state always intervenes in favour of the capitalist class.


What is the economic system and economic activity?

These are how an economy is doing in a particular area. This will vary depending on the time in history, the country, and how much the government intervenes.


How is political sovereignty shared in a federal system of government?

Amendment 10 gives the states political sovereignty. They are able to make decisions individually unless the Federal Government intervenes and give orders to follow.


What is market based economic system with limited government involvement?

Market Economy


In which type of economic system is government not involed?

A free-market system, although there are no true free market systems. Government always meddles to some extent.


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 is a free-market system?

It is a market with no government interference. I do not believe there are any pure free market systems today, although some come close and have limited government interference.


What system is a free market?

It is a market with no government interference. I do not believe there are any pure free market systems today, although some come close and have limited government interference.


What is a economic market system?

An economy that allows business owners to complete in the market with little government interference.


The market system does not produce public goods because?

They belong to the government.


How does the national government help to unify the nation?

using the market system


Which is assumed to be most limited in scope under a market system?

Government