--%>
Assignment Help - homework help

Mixed economic resolves essential economic problems

Why do some people think that a mixed economic system resolves essential economic problems?

E

Expert

Verified

It is since both the public sector and private sector have a say in answering the essential economic questions, therefore, there will be the degree of high efficiency (because of the private sector concern) and social welfare as well (because of the public sector concern).

It provides the Government to arbitrate when the economy faces market breakdown. The mixed economic system provides markets to operate freely till it fails to assign resources efficiently, subsequent to this, the government agencies, like the EU Competition Commission, are capable to correct for such failures. If this had been a totally free economic system, Government organizations wouldn’t have the means of power to be capable to arbitrate.

   Related Questions in Microeconomics

  • Q : Profit Maximization-Labor Markets If,

    If, after hiring the very last worker, the firm's profit is similar as it was before the last worker was hired, then the firm must: (1) Hire more workers to raise gain. (2) Layoff certain workers to raise the gain. (3) Not hire any more workers. (4) Shut down in short

    		•
  • Q : Law of Diminishing marginal utility

    Describe the Law of Diminishing marginal utility? Answer: Law of Diminishing marginal utility: As a consumer goes on consuming more and more units of a commodity th

    		•
  • Q : Total revenue for profit-maximizing TR

    TR stands for total revenue for this profit-maximizing pure competitor as in below figure equals area: (i) 0Phq2. (ii) 0bgq2. (iii) Pbgh. (iv) 0aeq1. (v) daef.

    Q : Demand for a poorer good Household’s

    Household’s demand for a poorer good tends to fall if: (1) Supplies of complementary goods increase. (2) Prices of alternate goods increase. (3) Family income rises. (4) Its own price drops/falls. Can someone

    		•
  • Q : Affect of total utility to marginal

    Whenever total utility is at a maximum, then marginal utility is: (1) Rising. (2) Reducing. (3) Zero. (4) Similar as total utility. Can someone help me in getting through this problem.

    		•
  • Q : Illustration of arbitrage in financial

    Darlene thinks as the “cowboy look” will rebound sharply subsequent spring. Then she travels to Mexico and buys ten-thousand pairs of primo cowboy boots at $35 every, and after that waits, expecting to sell them for $350 a pair in Chicago within the spring

    		•
  • Q : Monopolistic Exploitation problem Can

    Can someone help me in finding out the right answer from the given options. When a firm hires labor to a point where VMPL > MRPL = MFCL = w, then the (1) Firm consists of monopsony power. (2) Employees of firm are experiencing t

    		•
  • Q : Decrease prices as firms enter the

    When most firms in a competitive industry experience economic profits, in that case long run competitive pressures tend to cause: (w) greater economic profits. (x) prices to decrease as firms enter the industry. (y) industry output to fall. (z) severa

    		•
  • Q : Price discrimination by monopoly power

    A firm can practice price discrimination when this: (i) confronts a perfectly elastic demand curve. (ii) is a pure quantity adjuster. (iii) has several monopoly power and is capable to separate its customers in various groups with different elasticiti

    		•
  • Q : Effects of technology advances in

    The market prices for big plasma screen TVs are most probable to fall as an effect of: (1) Strikes by unionized workers in the electronics factories in Korea, Japan and China. (2) Seller expectations of Scarcities of plasma screen TVs. (3) Best Buy running competitors

    		•