Why does the laissez faire approach to economic policy imply only minimal government involvement? When does it make sense for the government to intervene in a perfectly competitive market setting?

Q: What is this collusion? The subject is principal of microeconomics.

A: Collusion is a strategy generally formed when there are few firms in the market to take extra…

Q: Pricing is key to affordability and economic structures. In a one-page entry, reflect on the role of…

A: Profitability is how much company makes from a sale after subtracting everything it costs to make…

Q: Connect In a free market system, how are incentives related to the principle of consumer…

A: A free market system, also known as a free enterprise economy or capitalism, is an economic system…

Q: a)What are the characteristics of a socialist economy? Of a capitalist economy? b)In your normative…

A: Economy generally refers to an area where there is production, trade, distribution and consumption…

Q: Explain the concepts of consumer and producer surplus? How do they determine the efficiency of a…

A: Resources such as machinery, raw materials, factories, money, time are finite but products made by…

Q: You have learned that the Law of Supply and Demand determines prices in a free-market system. Using…

A: Supply and demand is one among the foremost basic and fundamental concepts of economics and of a…

Q: Define the principles essential for understanding the economizing problem, demand and supply, and…

A: Demand and supply are the essential elements of the market economy. Following principles are…

Q: Explain the operation of the “invisible hand” and why market economies usually do a better job than…

A: The concept of invisible hand was put forward by adam Smith.

Q: Economist Adam Smith referred to "the invisible hand" of the market, but that invisible hand is…

A: Economist Adam smith was a classical economist who promoted free market economy in the world and the…

Q: why market economies usually do a better job than command economies at efficiently transforming…

A: Answer: Introduction: Market economy: it refers to the economy where there is no government…

Q: Explain the basic type of market structure in economics and explain them properly with clear…

A: 1] Perfect Competiton  In an ideal contest market structure, there are countless purchasers and…

Q: In 50 words.... Please Give one or two examples in the marketplace that describes the…

A: Free market refers to a marketplace whereby the principles of demand and supply regulate and governs…

Q: Explain, using examples, the difference between the following: Market Process and Traditional…

A: Market Process - This is the type of economic process as per which the economic activity is guided…

Q: After defining a ‘market mechanism’ and the ‘law of supply and demand’, explain how higher education…

A: The fluctuations that take place in the prices of various commodities are analyzed as the…

Q: Discuss in detail the objectives of micro economics

A: Economics is a study under which micro economic factors and macro economic factors are studied.

Q: The costs or benefits of a market activity that affect a third party are called: A) externalities.…

A: Occasionally, a third party not directly participating in the transaction may incur additional costs…

Q: Microeconomics deals with allocation of resources.   True/False

A: Allocation of resources refers to the way in which scarce resources are distributed among different…

Q: Which of the market structures is the easiest to penetrate and why? Please explain.

A: There are mainly four types of Market Structures. These are Perfect Competition, Monopoly,…

Q: Demonstrate a willingness to critically assess the impact of economic policies on economic…

A: These are the various economic policies adopted by the government in order to economic efficiency in…

Q: Discuss three cases of market failure, focusing on the reasons why they fail.

A: A market failure occurs when resources are not allocated effectively in a free market economy. A…

Q: What aspects & principles characteristic of non-market systems are important in our market economy?

A: A non-market system is an administered price system in which the prices of properties are set by an…

Q: explain why education is under consumed in the market place and what this means for society

A: Education is a merit good. Other examples of merit good include healthcare, museums, etc.

Q: Which of the following statements describes Principle 6: Markets are usually a good way to organize…

A: A market refers to the platform or a place for the people to interact with each other for making an…

Q: Draw and explain the circular flow chart of  decision makers’ choices and the way those choices…

A:

Q: Adam Smith’s theory of the invisible hand is often used to justify a hands-off approach to market…

A: The automatic equibrialization of demand and supply in a free market situation by any unobservable…

Q: Avon pays its sales personnel a commission for every sale they make. Which economic principle is…

A: Economic principles enable the study of economics easy and understandable by making some basic…

Q: 2. List the features that characterize a perfect competitive market.

A: 2. Feature of perfect competition market:- * Large number of buyers and sellers. * homogeneous/…

Q: Why is the right of private property an essential characteristic of a market system?

A: A market system consists of buyers and sellers who interacts in order to make economic decisions and…

Q: Why does the government answers the basic questions in mixed market economics

A: A system of economy which is a blend of capitalist and socialist system of economy is called mixed…

Q: How does economic freedom (people have choices on how to spend their money), private property (you…

A: Capitalist economy is a type of free market where every party consumer, producer acts freely in…

Q: How should commodities be priced in a competitive economy so as to ensure that consumer's plus…

A: Total surplus is defined as the measure of total wellbeing of all the members of the society, that…

Q: List the main characteristics of the market system.

A: In economics, the main economic systems studies are the planned system, the market system, and the…

Q: What defines market equilibrium? How about market disequilibrium? What are the contrasting…

A: Market equilibrium is attained when demand in market is equal to the supply in market. The…