A mixed economic system solves basic economic problems, Microeconomics

Assignment Help:

Why do some people believe that a mixed economic system solves basic economic problems? 

Ans) It is due to  the private sector and public sector both have a say in answering the basic economic questions, therefore, there will be a degree of high efficiency (because of the private sector involvement) and social welfare too (because of the public sector involvement).

It permits the Government to intervene when the economy faces market failure. The mixed economic system permits markets to operate freely until it fails to assign resources efficiently, after this, the government agencies, such as the EU Competition Commission, are able to correct for these failures. If this had been a totally free economic system, Government agencies would not have the means of power to be able to intervene.

 


Related Discussions:- A mixed economic system solves basic economic problems

Utility, if sabela can afford 4 trousers and 4 pairs of shoes.she could als...

if sabela can afford 4 trousers and 4 pairs of shoes.she could also use her entire budget to buy 8 trousers and 2 pairs of shoes.if the price of a trouser is 500 birr,how much is s

Functions of the central bank, Functions of the Central Bank: Currency...

Functions of the Central Bank: Currency issue and distribution: The Central Bank is the only institution empowered by law to issue currency notes and coins that are used as a

Public sectors economics, Aska) Summarize the basic tenets of the arguments...

Aska) Summarize the basic tenets of the arguments in thiscase b) Do you agree with main tenets of the arguments in the case? Why? Justify your answer with detailed explanations.

Claudia, Directions: You should legibly handwrite or type the answers to th...

Directions: You should legibly handwrite or type the answers to the following questions on a separate sheet of paper. These must be submitted in class (not via email unless you hav

What functions include of money, The functions of money include; (1)  mediu...

The functions of money include; (1)  medium of exchange,  (2)  store of value, and (3)  a calculate of worth.  Due to money is acceptable as a form of payment for all commodities,

Explain why goods provided by natural monopolies, Explain why goods provide...

Explain why goods provided by natural monopolies are often publicly owned. It would seem that most normal monopolies come with high MSB and also that society has deemed these g

Protection of infant firms, Protection of infant firms: Infant industr...

Protection of infant firms: Infant industries are those firms, which are young. The absence of economies of scale to them makes their unit cost of production higher than older

Demand Forecasting, what is demand forecasting and defines its techniques

what is demand forecasting and defines its techniques

Mixed economy, is south african economic system more allocative efficient?

is south african economic system more allocative efficient?

Calculate the mc function and fixed cost, (i). A firm's costs are 500 when ...

(i). A firm's costs are 500 when output is 100. If the TC function is linear and fixed cost (FC) are 200, find the marginal cost when Q = 4, 5 and 6. (ii). The following are est

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd