--%>
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 : Attract new firms by economics profits

    Economic profits within a competitive industry are signals which: (i) attract new firms into the industry. (ii) hinder innovation of new technologies. (iii) encourage inefficiency in existing firms. (iv) business conditions are deteriorating. (v) pric

    		•
  • Q : Case of heroin in public policies When

    When heroin were legalized in that case: (w) its price would fall and fewer addicts would connect in crime to support their habits. (x) the attractiveness of becoming a supplier would increase. (y) more people might experiment along with the drug since the price is re

    		•
  • Q : Costs of rate of return The rate of

    The rate of return for an asset which costs $1,500 today and pays $1,800 a year from now is: (1) 5 percent. (2) 10 percent. (3) 15 percent. (4) 17.5 percent. (5) 20 percent. Please choose the right answer from abov

    		•
  • Q : Twin problems of the U.S. health care

    Give the answer of following question. The twin problems of the U.S. health care industry are: A) rapidly rising costs and unequal access to health care. B) declining quality of health care and the duplication of specialized equipment at hospitals. C) declining per ca

    		•
  • Q : Demands for productive resources The

    The demands for productive resources are eventually “derived” by the: (w) marginal utility they directly generate. (x) demands for consumer goods and services. (y) disutility incurred in supplying labor. (z) equity of resource owners as ju

    		•
  • Q : Definition of law of demand Definition

    Definition of law of demand: It is the claim that, other things equivalent, the quantity demanded of a good drops/falls whenever the price of the good increases.

    		•
  • Q : Labor Productivity in Economic Capital

    Labor productivity tends to rise while: (1) the K/L ratio increases. (2) the K/L ratio decreases. (3) workers forego education. (4) capital becomes more expensive. (5) wage levels fall. Please choose the right answ

    		•
  • Q : Shutting down the average expected

    All firms will shut down when the average expected revenue by selling output fails to exceed expected: (w) average total cost. (x) marginal cost. (y) average fixed cost. (z) average variable costs. I need a good an

    		•
  • Q : Define marginal cost Marginal cost : It

    Marginal cost: It is the change in sum cost by generating one more or less unit of output.

    		•
  • Q : Functions of price mechanism What are

    What are the various functions of price mechanism in a free market economy?

    		•