ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Increasing input costs
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Increasing profits
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Lowering consumer prices
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All of the above
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Detailed explanation-1: -The government may help businesses by providing financial, legal, and other assistance. It can also be a public servant, enacting and enforcing consumer protection, labour safety, and other regulations. Regulators have a lengthy history of locking nations in long-term decline patterns.
Detailed explanation-2: -The main types of market failure include asymmetric information, concentrated market power, public goods and externalities.
Detailed explanation-3: -The regulation of business activities like import and exports, foreign exchange and etc., through Imports and Exports (Control) Act, COFEPOSA, FERA and FEMA. The Imports and Experts (Control) Act, 1947 amended from time to time empowers the government to prohibit or control imports and exports in the public interest.
Detailed explanation-4: -Enacting and Enforcing Laws. Maintaining Law and Order. Providing Monetary System. Balanced Regional Development and Growth. Provision of Basic Infrastructure. Supply of Information. Assistance to Small-scale Industries. Transfer of Technology. More items