Can the market / price mechanism find some solutions?

Q: According to Adam Smith, the "invisible hand" refers to the government's effort to always keep a…

A: Adam Smith was an economist who is well known for his book wealth of nation, invisible hand.

Q: Define and explain the importance of "Beggar-Thy-Neighbor Policy"

A: The exchange of goods and services that happens across countries is known as international trade. It…

Q: Explain why many argue the use of “market” prices will NOT necessarily enable the economy to operate…

A: A production possibilities curve is a graphical portrayal of the combinations of services and goods…

Q: What are the effects of government intervention in the market?

A: Government intervention in the market is very necessary as it leads to efficiency in the market…

Q: How did the flood affect onion production? Can you show the change in equilibrium price and quantity…

A: The above figure shows the impact of the flood on onion production which shows that due to the…

Q: What is market reform and individual preferences,

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Q: In the presence of market failure ,the argument for government intervention is only compelling but…

A: There are several types of “market failure,” which occurs when some attributes of the market prevent…

Q: Explain what is meant by market failure and   outline the sources of market failure.

A: Market failures can be corrected by allowing competitive producers in the market and consumers as…

Q: Explain the two causes of market failures. Given their definitions, could a market be affected by…

A: Market failure refers to the condition where the free markets fail to distribute resources…

Q: The chart above shows the market for polio vaccine in Pakistan. This vaccine provides external…

A: a. If there is a competitive market and no government intervention, then the amount will be…

Q: Is market failure either necessary or sufficient for government intervention

A: Market failure refers to a situation when the allocation of goods or services by the forces of free…

Q: Describe at least three reasons why market failure occur

A: The main reasons of Market failure occurs in the following ways:- 1.Negative Externalities:- This…

Q: How significant is the market failure?

A: In the theory of economics, market failure defined to be the situations when free-market allocation…

Q: From the perspective of the ____, the price at which a unit is exchange is the marginal cost of that…

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Q: Markets fail, so there could not be a total reliance on the market forces. The government has to…

A: Economic system means the system in which resources are owned by the society or government and…

Q: The production possibilities curve shows the tradeoff between housing and all other goods. a. If the…

A: PPC stands production possibilities curve which describe the possibility of production with given…

Q: ts would be inefficient.  The tax revenue earned by the Austrian government is more important than…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: In the words of Columbia economist Jeffrey Sachs, “Markets won.” But will markets stay the winner?

A: The markets are an institution which involves buyers and sellers to interact in the marketplace as a…

Q: When markets fail, public policy can   a.  do nothing to improve the situation.     b.…

A: Market failure is when the allocation and distribution of goods and services is inefficient. In…

Q: What are the Indicators of market potential according to Economic factors?

A: The economic indicators measure the performance of various variables and thus make predictions about…

Q: To what extent are free markets morally justified? In your answer, you may want to be clear about…

A: Argument in support of free market  A free market is an economic system in which the prices of goods…

Q: Evaluate the arguments for government intervention in the markets.

A: Government interventions refer to the interference of the government in the market. This is…

Q: What kinds of inequalities we are facing in "free market" according to Milton Friedman?

A: Free market also known as capitalism where economic decision is taken by the market forces with…

Q: What does rationalism mean within the context of political economy?

A: Political economy refers to the branch of social sciences that studies the interrelationships among…

Q: In his testimony before the house ways and means health subcommittee, Robert Reischauer stated that…

A: Price controls and global budgets both are cost containment strategies practiced in the field of…

Q: Which one of the two policies, a tax on pork meat consumption, or a tax on pork meat production, is…

A: Pork sector of animal husbandry is very unorganized sector. It mostly distributed under small…

Q: Discuss how the equilibrium price and quantity change when a change in demand occurs and the supply…

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Q: The figure below shows the market for an agricultural product. The government maintains the price of…

A: The government expenditure is the expenditure incurred in the construction of the new house,…

Q: two economists went to the same university disagree on policies such as minimum wages or higher…

A: Minimum wages:- Favorable opinion:- The minimum wage rate policy gives incentive to labour thus…

Q: What are three reasons that a government might want to intervene in markets?

A: Government interference is government legislative action that aims to alter the decisions taken…

Q: Why does government intervention become necessary in the situation of market failure?

A: Market failure is an economic situation wherein the goods and services in an economy cannot be…

Q: Why Malaysian governments often fail to implement market policy? Give an example.

A: Malaysian government do not initiate regulatory reforms on inclusive basis for the functioning of…

Q: What are the possible reasons why the government may make a market intervention? What are the…

A: The intervention by the government is the action taken by the government which can change the…

Q: What is the Samuelson Rule? Why does the market outcome, based on the actions of rational,…

A: Answer -   Public Goods :- Public goods are those goods that can not be exhausted by the usage and…

Q: The following figure shows the market for steel. For the market with pollution in the following…

A: This diagram is of negative externalities. Any discrepancy between the private cost of an activity…

Q: How do prices communicate to economic actors?

A: According to prices economic actors behave. For example with less price economic actor demand…

Q: Consider a club promoter who wants to build a night club right next to your apartment building. You…

A: The externality as defined in the question as follows- The effect of market exchange on a third…

Q: Help me understand the consequences of the market failure

A: Answer: Market failure appears when the attainable outcomes are not achieved, it is a situation…

Q: Why might producers argue for a price floor if it ends up making society worse off

A: Price floor is the least legal price of a good or service. Example of price floor minimum wage rate

Q: What is the definition of totalitarianism

A: Totalitarianism is an economic system where the government has total, centralized state control over…

Q: In a market economy, what is the central coordinating mechanism? How does a market economy solve the…

A: Hey, thank you for the questions but according to our policy we answer only one question per…

Q: A market economy is regulated by “an invisible hand” known as the market mechanism. Explain what the…

A: Market economy: - The market economy is that economy where the production and pricing decisions are…

Q: To what extent are free markets morally justified? In your answer, you may want to be clear about…

A: The markets are a distributive mechanism which would result in the allocation of the goods and…