the difference in market and government occurs in the allocation of resources and labor division which determines the prices
C) the degree to which the government is involved in the allocation of resources.
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 .
market failer
In a command economy the government decides how resources are used and what goods and service are produced. In a market individuals make the decisions about how resources are used and what gods and services to provide.
Some decisions are taken by the households ad firms, like in a free market economy. Whilst some decisions and resource allocation policies are set by the government.
C) the degree to which the government is involved in the allocation of resources.
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 .
market failer
In a command economy the government decides how resources are used and what goods and service are produced. In a market individuals make the decisions about how resources are used and what gods and services to provide.
In a command economy the government decides how resources are used and what goods and service are produced. In a market individuals make the decisions about how resources are used and what gods and services to provide.
Some decisions are taken by the households ad firms, like in a free market economy. Whilst some decisions and resource allocation policies are set by the government.
Some decisions are taken by the households ad firms, like in a free market economy. Whilst some decisions and resource allocation policies are set by the government.
because there is no restriction on the usage of resourses so they can use according to their need.
because there is no restriction on the usage of resourses so they can use according to their need.
the government
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
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