what are the political and economic reasons for governments to intervene in markets?
428252
The government tries to combat market inequities through regulation, taxation, and subsidies. Governments may also intervene in markets to promote general economic fairness. Maximizing social welfare is one of the most common and best understood reasons for government intervention.
224642
Political Risk Although competing in international markets offers important potential benefits, such as access to new customers, the opportunity to lower costs, and the diversification of business risk, going overseas also poses daunting challenges.
1006128
This is affecting things like agro-biodiversity, forest and water management schemes. This in turn leads to greater pressure for privatisation of natural resources. At the macroeconomic level and as trade liberalisation proceeds, globalisation has unleashed forces that force countries to increase exports.
1236048
The government needs to make the decisions. It is assumed that the needs of the people are not met in a market economy; therefore, in a centrally planned economy, the government controls decision-making. The government can determine the price of goods and services.
1002671
['To what extent should the government intervene in the market? ... ', 'How to define economic welfare? ... ', 'To what extent can the government / Central Bank influence the macro-economy? ... ', 'What is the difference between micro and macroeconomics?', 'What are the uses and limitations of economic data?']
1431007
Unlike basic Price, it is inclusive of the imposed taxes on the goods to be sold in the market. It also deducts the subsidies offered by the government if there is any.
478800
It is the role of governments to protect their subjects' health and interests as consumers of publicly marketed food. ... Governments have key role in setting policy and providing legislation that lays down minimum food safety or marketing standards that food businesses must meet.
299226
['Number of Sellers. ... ', 'Prices of Resources. ... ', 'Taxes and Subsidies. ... ', 'Technology. ... ', "Suppliers' Expectations. ... ", 'Prices of Related Products. ... ', 'Prices of Joint Products.']
453389
['Limited role of government.', 'Freedom of enterprise.', 'Freedom of choice.', 'Profit Incentive.', 'Competition.', 'Private Property.']
1296039
['All resources are owned and managed by the government.', 'There is no Consumer or producer sovereignty.', 'The market forces are not allowed to set the price of the goods and services.', 'Profit in not the main objective, instead the government aims to provide goods and services to everybody.']
487011
While a mixed economy combines free market with central government planning and intervention, a market economy relies purely on the free market (and the rules of supply and demand) to regulate the economy. For this reason, profit motives, incentives, and capitalism are the driving factors of the economy.
1245197
Regulation of monopoly. The government may wish to regulate monopolies to protect the interests of consumers. For example, monopolies have the market power to set prices higher than in competitive markets.
1265799
["Market system automatically responds and adjusts to the people's wants.", 'Wider variety of goods and services.', 'Competition pushes businesses to be efficient: keeping costs down and production high.', 'Government does not have to take decisions on basic economic questions.']
619292
The emphasis on direct government intervention in the economy places Keynesian theorists at odds with those who argue for limited government involvement in the markets. Lowering interest rates is one way governments can meaningfully intervene in economic systems, thereby generating active economic demand.
337521
One role of government is to correct problems of market failure associated with public goods, external costs and benefits, and imperfect competition. Government intervention to correct market failure always has the potential to move markets closer to efficient solutions and thus reduce deadweight losses.
1130959
In the marketplace, rules and regulations are required to protect the rights of the consumers against the exploitation of the retailers. In the marketplace, individual buyers finds themselves in a weak position, therefore, to comfort consumers in the market place, the government has to enact some rules and regulations.
629835
The government determines how and where the goods produced would be sold. In a market economy, the wants of the consumers and the profit motive of the producers will decide what will be produced. A.K.A. Free-enterprise, Laisse- faire & capitalism.