ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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to provide equity and stability to the economy
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it is the easiest way to achieve economic growth
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central banks, like the Fed, do not have the ability to do these things
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to maximize the ups and downs of the business cycle
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Detailed explanation-1: -The primary means by which market failure can be corrected is through government intervention. This requires the government to pass legislation such as antitrust policies and to incorporate various price mechanisms such as taxes and subsidies.
Detailed explanation-2: -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-3: -Reduce unemployment and inflation, and promote economic growth. (The federal government attempts to stabi-lize the economy through applications of fiscal policy [by raising or lowering taxes, or by government spending] and monetary policy [by controlling the money supply or by changing interest rates].
Detailed explanation-4: -There are many advantages of government intervention such as even income distribution, no social injustice, secured public goods and services, property rights and welfare opportunities for those who cannot afford.