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Is price mechanism is an effective way to solve the basic economic problem?
Wiki User
∙ 13y ago
yes, because the average consumer will opt an item which his pocket permits. lot of companies spend more money on packs/tins/containers, to attract consumer.
if you reduce production cost on it and brand it as economy income group (which is strange, not yet introduced ) consumers will get used to it.
Wiki User
∙ 13y ago
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Discuss whether the price mechanism is an effective way to solve the basic economic problem?
Price mechanism is an effective way to solve the basic economic problem. The price of a product is what will determine the demand and this will influence the production output which directly affects the economy.
How can the basic economic problem solved in a capitalist economy?
It is the price mechanism
Is the price mechanism an effective way to the solve the basic economic problem?
The price mechanism is a feature of the free market and operates through demand and supply and the self interest of individuals, government action is minimised. This has the benefits of incentive, efficiency, innovation, choice and consumer sovereignty. Against this there may be market failure including inequality, lack of public and merit goods, externalities and instability. Depending upon the degree of failure the mechanism may be more or less effective. The price mechanism does not solve the basic economic problem but is thought to be effective when operating efficiently.
How market forces help to solve basic economic problems?
how does the market mechanism solve the basic problem of free market economy?
What do you understand by basic economic problem?
The basic economic problem is scarcity of resources which is caused by the existence of alternative uses of resources
Discuss whether the price mechanism is an effective way to solve the basic economic problem?
Price mechanism is an effective way to solve the basic economic problem. The price of a product is what will determine the demand and this will influence the production output which directly affects the economy.
How can the basic economic problem solved in a capitalist?
It is the price mechanism
How can the basic economic problem solved in a capitalist economy?
It is the price mechanism
Is the price mechanism an effective way to the solve the basic economic problem?
The price mechanism is a feature of the free market and operates through demand and supply and the self interest of individuals, government action is minimised. This has the benefits of incentive, efficiency, innovation, choice and consumer sovereignty. Against this there may be market failure including inequality, lack of public and merit goods, externalities and instability. Depending upon the degree of failure the mechanism may be more or less effective. The price mechanism does not solve the basic economic problem but is thought to be effective when operating efficiently.
How market forces help to solve basic economic problems?
how does the market mechanism solve the basic problem of free market economy?
What do you understand by basic economic problem?
The basic economic problem is scarcity of resources which is caused by the existence of alternative uses of resources
Why do all countries face the basic economic problem?
The basic economic problem is about scarcity and choice, which every society has to deal with.
Basic economic problem will not be solved by?
which one of the following is not one of the basic economic question
What are the basic problem in the Philippines?
The basic economic problems in the country of Philippines is high unemployment. For those that are employed low wages is another economic problem.
What is the basic economic problem that makes choices necessary?
The basicc economic problem that makes choices necessary is that there are limited economic resources & unlimited human wants.
Answer to the 3 basic economic problems?
The three basic economic problems are what to produce, how to produce, and for whom to produce. These problems stem from scarcity of resources and unlimited wants. Economies must allocate resources efficiently to address these issues.
What are the three economic problem that all economies face because ofthe basic economic problem?
The basic economic problem which is Scarcity give rise to 3 fundamental problems. 1) What to produce (Type & how many) 2) How to produce (Methods of production) 3) Whom to produce for (Not for everyone will get the good) Because of limited resources.
