Evaluate the statement: “The government should have no place in a capitalistic market system.”
Please provide the best answer for the statement.
While having a large government presence in the economy like in a command market system can be detrimental to efficiency, innovation and growth, there is still a place for government in a capitalistic system. Government can work to promote economic stability and growth and provide rules for the market system to ensure fair business practices, all of which benefit the economy and society as a whole. The government can also work to provide goods and services that would be under produced or not produced at all. The government also redistributes income. While market forces play the dominant role in determining what and how much is produced, the government still has a part in the system.
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Differentiate between a patent and a copyright
What will be an ideal response?
Economic profits in a competitive industry are signals that
a. attract new firms into the industry b. prevent firms from adopting newer technologies c. encourage existing firms to continue to operate inefficiently d. indicate that business conditions are improving e. cause the industry's resources to be used in lower valued uses
If a perfectly competitive market is in equilibrium and then market demand increases, which of the following would happen?
a. producer surplus would definitely increase and consumer surplus may increase or decrease b. producer surplus would definitely decrease and consumer surplus may increase or decrease c. consumer surplus would definitely decrease and producer surplus may increase or decrease d. consumer surplus would definitely increase and producer surplus may increase or decrease e. producer and consumer surplus would remain unchanged
The ability of a country to produce a good or service at a lower cost than its trading partners is
A. its absolute advantage. B. its comparative advantage. C. both its absolute and comparative advantage. D. neither its absolute nor its comparative advantage.