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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.
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∙ 12y ago
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A government that operates a market economy MIGHT become involved in the economy?
to provide public goods and services to its citizens.
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.
How might a nation move from a command economy to a market economy?
Nations are moving towards a market economy and away from the command economy because the market economy is more efficient and makes more people happy. A market economy has more protections in place for consumers.
How might the federal reserve to an overheated economy or boom?
The Federal Reserve respond to an overheated economy or boom by selling bonds in the open market.
How might the purchase decisions of consumers impact a market economy?
By buying some products, but not others, consumers might determine what is produced.
A government that operates a market economy MIGHT become involved in the economy?
to provide public goods and services to its citizens.
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.
How might a nation move from a command economy to a market economy?
Nations are moving towards a market economy and away from the command economy because the market economy is more efficient and makes more people happy. A market economy has more protections in place for consumers.
How might the federal reserve to an overheated economy or boom?
The Federal Reserve respond to an overheated economy or boom by selling bonds in the open market.
How might the federal reserve respond to the slowdown in the economy or recession?
By buying bonds in the open market
How might the purchase decisions of consumers impact a market economy?
By buying some products, but not others, consumers might determine what is produced.
One option available to regulate a monopoly is?
In certain cases, the government might have to intervene by imposing fines or otherwise regulate the business. In the case of public goods, the government might actually have to be the producer of certain desirable, yet unprofitable goods and services.
How might the federal reserve response to a slowdown in economy or recession?
By buying bonds in the open market(correct answer for apex)
What might have happened if the government had not been able to mobilize the economy so quickly?
He will shat his pants....
What motivates people to work in a market economy?
In a market economy, people are motivated to work by self interest. In a command economy, such as that of North Korea, people are motivated by some combination of patriotism and fear. In a utopian community they might be motivated by idealism. Those are pretty much the only options.
Why was trade important in Egypt?
it was so important so you can get new things and not stick with old things
What can be done to increase consumption in a depressed economy?
Keynesian economics might be successful as it was in the 1960's depression. It is basically the government going into debt then pumping more money into the economy.
