ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Redistributes income
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Protecting property rights
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Providing public goods and services
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Resolving market failures
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Detailed explanation-1: -A monopoly power in the market can be controlled by the government by passing restrictive trade practice legislation and anti-monopoly laws. These regulations are targeted to remove unfair competition in the market, prevent iniquitous price discrimination and fixing prices that equal to competitive prices.
Detailed explanation-2: -Air pollution can affect businesses through reduced workforce productivity, work absences, premature deaths and lower crop yields. The longer we take to clean our air, the greater the economic costs will be.
Detailed explanation-3: -The adverse effects of greenhouse gases are therefore ‘external’ to the market, which means there is usually only an ethical – rather than an economic – incentive for businesses and consumers to reduce their emissions. As a result, the market fails by over-producing greenhouse gases.
Detailed explanation-4: -The term ‘deadweight loss’ is used to describe the shortfall in welfare caused by market failure. There are a number of reasons for markets failure: Monopoly Power (lack of competition)