Why might governments choose to dispense with the market mechanism for directing development? What problems will arise?
What will be an ideal response?
Concerns about markets include instability, uncertainty, and exploitation of the poor will arise. Without markets, however, resource allocation has no objective basis and governments acquire considerable power, which may lead to other kinds of exploitation.
Economics
You might also like to view...
In the figure above, at the point where the price is $4 per cup the price elasticity of demand is
A) 2. B) 0.5. C) 1. D) 1.5. E) 0.
Economics
GDP equals $8 trillion. If consumption equals $5.5 trillion, investment equals $500 billion, and government spending equals $1.5 trillion, then:
a. exports exceed imports by $500 billion. b. imports exceed exports by $500 billion. c. net exports equal zero d. exports exceed imports by $1 trillion.
Economics