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When the government intervenes in the market economy to correct a market failure?
Wiki User
∙ 12y ago
Market don't fail because government make price to be equal in the market by interven
Wiki User
∙ 12y ago
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What extent should government intervene in free trade?
In a free enterprise (market) economy, the expected role of the government is to allow free operation of the market unless market failure occurs at which point it intervenes to prevent welfare losses.
Why might a government intervene in the market economy?
Essentially, due to market failure of some type: the market does not efficiently allocate some desirable commodity and the government attempts to correct this misallocation.
Why does even a free enterprise market economy need some government intervention?
Even a free market economy needs government intervention to provide for things that the marketplace does not address.
Under what conditions might government intervention in a market economy improve the economy's performance?
If there is a market failure, such as an externality or monopoly, government regulation might improve the well-being of society by promoting efficiency. If the distribution of income or wealth is considered to be unfair by society, government intervention might achieve a more equal distribution of economic well-being.
Why do governments get involved in market economies?
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
What extent should government intervene in free trade?
In a free enterprise (market) economy, the expected role of the government is to allow free operation of the market unless market failure occurs at which point it intervenes to prevent welfare losses.
Why might a government intervene in the market economy?
Essentially, due to market failure of some type: the market does not efficiently allocate some desirable commodity and the government attempts to correct this misallocation.
What are factors or ways the government use to correct market failure?
corruption
What are the effects of the new single spine pay policy of government on Ghana economy?
failure, absolute disaster
What year was the first nationwide failure of the economy?
1929
What is a passive government?
what is passive government failure
Why does even a free enterprise market economy need some government intervention?
Even a free market economy needs government intervention to provide for things that the marketplace does not address.
Under what conditions might government intervention in a market economy improve the economy's performance?
If there is a market failure, such as an externality or monopoly, government regulation might improve the well-being of society by promoting efficiency. If the distribution of income or wealth is considered to be unfair by society, government intervention might achieve a more equal distribution of economic well-being.
What is audit failure?
An audit failure is when an auditor says that financial statements are correct when they actually are not correct. This is basically when an auditor lies for a business.
WAS ancient Rome's government considered a success or failure and why?
The Roman government is considered neither a success nor a failure.
Is it correct to say i wasn't?
Yes it is correct - except for your failure to capitalize the pronoun I.
Why do governments get involved in market economies?
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
