--%>
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 : Revenue expenditure Why payment of

    Why payment of interest is treated as revenue expenditure? Answer: Since it does not cause any decrease in the liability of government.

    		•
  • Q : Occurrence of Adverse Selection When an

    When an NFL football team obscures information regarding damage to a former all-pro linebacker’s knees prior to trading him to the other team, the team which receives that player loses since of: (1) Immoral hazard. (2) Malfeasance. (3) Perverse selection. (4) Ad

    		•
  • Q : Maximizes total revenue by a monopolist

    A monopolist maximizes total revenue through producing where is: (w) marginal revenue = marginal cost [MR = MC]. (x) marginal revenue = 0. (y) demand is elastic. (z) demand is inelastic. How can I solve my

  • Q : Perfect competition and monopoly I have

    I have difficulty in this question. Provide me correct solution of this economy question. Compare & contrast the supposition of monopolistic competition along with perfect competition & monopoly.

    		•
  • Q : Income Effects-Inferior Goods I have a

    I have a problem in economics on Income Effects-Inferior Goods. Please help me in the following question. When monetary prices drop and the quantity of a good your family purchases reduces as the purchasing power of your family income has risen, the good is a/an: (1)

    		•
  • Q : Illustration of Contestable Market The

    The probably of the following industries to be a contestable market is: (i) electricity generation. (ii) cellular telephone services. (iii) cable TV systems. (iv) natural gas service. (v) water and sewer services.

  • Q : Involvement of price makers firms

    Price-maker firms would most likely comprise: (1) a tomato farmer in California. (2) a sheep herder who produces wool in a remote part of New Zealand. (3) a stock broker who contacts customers through the internet. (4) a rural grocery store. (5) the b

    		•
  • Q : Oligopolistic firms by intersecting two

    In this illustrated figure kinked demand curve model, there two demand curves intersect at point a since the other oligopolistic firms: (w) are rapid to follow both price increases and price decreases by rival firms. (x) will follow p

    		•
  • Q : Contradiction of the law of diminishing

    Can someone help me in finding out the right answer from the given options. Which of the following below seems the contradiction of the law of diminishing marginal utility? (1) Ken enjoys his 13th beer of the evening more than his initial. (2) Joan recognizes that her

    		•
  • Q : Negative income tax programs Negative

    Negative income tax programs attack poverty through: (w) levying heavy taxes on the poor to encourage them to work more. (x) providing transfers in kind to low income households. (y) providing cash subsidies to guarantee a minimum income to low income

    		•