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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 economy
- to achieve a more equitable distribution of income and wealth
Drew Tremblay
Wiki User
∙ 12y agoA 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 economy
- to achieve a more equitable distribution of income and wealth
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Why do many governments in countries with market economies outlaw or control monopolies?
Monopolies can make excessive profits by over-charging consumers.
Why do many governments in countries with market economies control outlaw monopolies?
Monopolies can make excessive profits by over-charging consumers.
Why are command economies less efficient the market economies?
the competition in the market economies encourages both qyality and low prices.
Equilibrium and economies scale in market economy?
Equilibrium and economies scale in market economy
What is meant by transition economies?
The economies which are converting from social market system to capital market system
Why do many governments in countries with market economies outlaw or control monopolies?
Monopolies can make excessive profits by over-charging consumers.
Why do many governments in countries with market economies control outlaw monopolies?
Monopolies can make excessive profits by over-charging consumers.
Why are command economies less efficient the market economies?
the competition in the market economies encourages both qyality and low prices.
Equilibrium and economies scale in market economy?
Equilibrium and economies scale in market economy
What is meant by transition economies?
The economies which are converting from social market system to capital market system
Why are command economies usually less efficient than market economies?
The competition in market economies encourages both quality and low prices.
Why are command economies usuall less efficient than market economies?
The competition in market economies encourages both quality and low prices.
Why are commanded economies usually less efficient than market economies?
The competition in market economies encourages both quality and low prices.
Why market economies are becoming popular around the world?
market economies are found in democratic forms of government
What is the outline of the benefits of free market economies to owners of firms?
what does the free market economies benefits to owners
Why are most economies referred to as mixed economies?
poverty is always higest in countries with market economies
Why are most economies refered to as mixed economies?
poverty is always higest in countries with market economies
