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How does a free market ensure an effcient allocation of resources?
Wiki User
∙ 12y ago
According two the first two fundamental theorems of welfare economics, if there exist a series of economic agents each with a set of initial resource allocations who are able to buy/sell and satisfy the weak axiom of revealed preference (WARP), then their optimal allocation is also Pareto efficient; and, if a Walrasian equilibrium solution to this market exists, it must also be Pareto efficient. Therefore, any market satisfying these mathematical properties possesses a price vector that will ensure Pareto efficiency.
Wiki User
∙ 12y ago
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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 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
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 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 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
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.
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
What statement does not describe a market economy?
The problems of scarcity and allocation of resources are addressed by production for use or need rather than productio for profit.
What are the factors that effect the budget resources allocation decisions of managers?
The internal objectives of a business; the regulations and legislation's that affect the market plans; world news and events; industrial analyst reports, financial analysis; establishing strategic goals, achieving them and attaining results. These are the factors that affect budget resources allocation decision of managers.
What three problems in the free market work against the efficient allocation of resources?
1.Imperfect conpetition 2.spillover costs/externalities 3.Imperfect Information.
What is the market cap for Clough Global Allocation Fund GLV?
As of July 2014, the market cap for Clough Global Allocation Fund (GLV) is $161,527,700.88
What is the market cap for Guggenheim Credit Allocation Fund GGM?
As of July 2014, the market cap for Guggenheim Credit Allocation Fund (GGM) is $163,210,633.18.
