--%>

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 : Problem on opportunity cost buying a

    After agonizing regarding whether to buy a hot dog or a hamburger along with his last dollar while he goes to the fair, Jeeter at last chooses the hot dog. The hamburger shows Jeeter's: (i) normative choice, because it would be more nutritious. (ii) opportunity cost o

  • Q : Divergences arise between equilibrium

    What divergences arise between equilibrium and an efficient output when spillover costs? How might government correct this divergence?

  • Q : Best alternatives while choices are made

    Opportunity costs, which are the values of the: (i) monetary costs of goods and services. (ii) best alternatives sacrificed while choices are made. (iii) minimal budgets of families upon welfare. (iv) hidden charges passed upon to consumers. (v) exorb

  • Q : Scientific method how does it relate to

    What is the scientific method and how does it relate to theoretical economics?  What is the difference between a hypothesis and an economic law or principle?

  • Q : Raising consumer surplus problem For

    For the question below, utilize the given information. The market for gizmos is competitive, with an increasing sloping supply curve and a downward sloping demand curve. With no govt. intervention, the equilibrium price is $25 and the equilibrium quantity is 10,000 gi

  • Q : Distinguish clearly between a plant

    Distinguish clearly between a plant, a firm, and an industry?

  • Q : Explain how women expanded production

    Explain how women expanded production possibilities?

  • Q : Introduction of the term Risk factor

    Give a brief introduction of the term Risk factor?

  • Q : Changing rates of Appreciation and

    Elucidate the changing rates of Appreciation and Depreciation?

  • Q : Illustrate the Optimal or best

    Illustrate the Optimal or best product-mix and also Law of increasing opportunity costs?