--%>

Increase the overall effectiveness of the market system

How the government can increase the overall effectiveness of the market system?

E

Expert

Verified

Although the market system promotes efficiency, it has certain shortcomings over production of goods with social costs, under production of goods with social benefits, tendency for business to increase monopoly power, macro instability.

   Related Questions in Business Economics

  • Q : Determine relative price when two

    When the prices for doughnuts and croissants are $.50 and $1 correspondingly: (w) the opportunity cost for one doughnut is two croissants. (x) this is better to buy two doughnuts than one croissant. (y) one croissant will make Pierre twice as happy as one doughnut. (z

  • Q : Fiscal Policy Fiscal Policy : Public or

    Fiscal Policy:Public or government finance is a field of economics. This deals with budgeting the revenues and expenditures of government (i.e., or public sector). It is regarding the identi

  • Q : Problem on productive contribution

    Suppositions underpinning simple production possibilities frontier models don’t comprise a need that: (i) Net resources are fixed. (ii) All resources are efficiently employed. (iii) Technology is steady. (iv) Resource owners are paid according t

  • Q : Explain the cause of Trade barriers

    Explain the cause of Trade barriers?

  • Q : Write short note on Demand Write short

    Write short note on Demand, Supply and Equilibrium?

  • Q : Generalization and abstraction are

    Explain the statement: “Generalization and abstraction are nearly synonymous.”?

  • Q : Illustrate the supply curve and also

    Illustrate the supply curve and also determinants of supply?

  • Q : Characteristics of Perfectly

    Perfect competition is characterized by all of the following except w) heavy advertising by individual sellers. x) homogeneous products. y) sellers are price takers. z) a horizontal demand curve for individual sellers.

    Q : Innate psychological attributes of

    As illustrated by Adam Smith that there are two innate psychological attributes of humans. One is which people have a powerful wish to better their individual circumstances. The other is as human beings so we are: (1) more interested

  • Q : Illustrate the Comparative advantage

    Illustrate the Comparative advantage and terms of trade?