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How does market and government differ in allocation of resources?
the difference in market and government occurs in the allocation of resources and labor division which determines the prices
When the market does not result in an efficient allocation of scarce resources economists call this?
market failer
What are disadvantages to a market economy?
A Market economy is reffered to as an economy in which the consumers decide what to produce, How to produce and For whom to produce. There are several disadvantages of a market economy. The main one being an inefficient allocation of resources refered to as market failure. Firstly, some good and services would be under provided such as defence and education.
Does a subsidy create a deadweight loss, and if so, why?
Yes, a subsidy can create a deadweight loss because it distorts the market by artificially lowering the price of a good or service, leading to an inefficient allocation of resources. This can result in reduced overall economic welfare as resources are not being used in the most productive way.
Describe the allocation of resources in market and mixed economic systems?
In a free market where the demand and supply of resources as return to factors are determined by market forces to determine the resource allocation usually owned by private Enterprise through price mechanism, although government control to some extent also determines the allocation of resources for auxiliary or subordinate production of goods and services in a mixed economic system by planning in the production possibilities by the scarce resource allocation .
How does market and government differ in allocation of resources?
the difference in market and government occurs in the allocation of resources and labor division which determines the prices
When the market does not result in an efficient allocation of scarce resources economists call this?
market failer
What are disadvantages to a market economy?
A Market economy is reffered to as an economy in which the consumers decide what to produce, How to produce and For whom to produce. There are several disadvantages of a market economy. The main one being an inefficient allocation of resources refered to as market failure. Firstly, some good and services would be under provided such as defence and education.
What was not a priority of soviet planners?
Individual consumer preferences and market demand were not a priority of Soviet planners. Instead, they focused on meeting production targets set by the state, often leading to inefficient allocation of resources and goods.
Does a subsidy create a deadweight loss, and if so, why?
Yes, a subsidy can create a deadweight loss because it distorts the market by artificially lowering the price of a good or service, leading to an inefficient allocation of resources. This can result in reduced overall economic welfare as resources are not being used in the most productive way.
Describe the allocation of resources in market and mixed economic systems?
In a free market where the demand and supply of resources as return to factors are determined by market forces to determine the resource allocation usually owned by private Enterprise through price mechanism, although government control to some extent also determines the allocation of resources for auxiliary or subordinate production of goods and services in a mixed economic system by planning in the production possibilities by the scarce resource allocation .
In a market economy what are the most important factors affecting scarcity?
C) the degree to which the government is involved in the allocation of resources.
How does the free market ensurEs an efficient allocation of resources?
because there is no restriction on the usage of resourses so they can use according to their need.
How does the free market ensure efficient allocation of resources?
because there is no restriction on the usage of resourses so they can use according to their need.
How does economics work to determine the allocation of resources in society?
Economics determines the allocation of resources in society through the forces of supply and demand. When resources are scarce, individuals and businesses make choices about how to allocate them based on their needs and preferences. Prices play a key role in signaling the scarcity of resources and guiding decision-making. In a market economy, prices adjust based on supply and demand, leading to the efficient allocation of resources to where they are most valued.
Why is monopolistic competition inefficient compared to perfect competition?
Monopolistic competition is inefficient compared to perfect competition because firms in monopolistic competition have some degree of market power, allowing them to set prices higher than in perfect competition. This leads to higher prices for consumers and less efficient allocation of resources. Additionally, firms in monopolistic competition may engage in non-price competition, such as advertising, which can further reduce efficiency.
What is considered in efficient allocation of resources?
When the market rewards you: As a customer: with falling prices and increasing quality As a producer: with an increase in revenue, and customer volume
