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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In the figure above, if income were distributed equally across all households, the poorest 10 percent of households would receive ________ of total income
A) 5 percent B) 10 percent C) 15 percent D) 20 percent
Everything else held constant, if aggregate output is to the right of the LM curve, then there is an excess ________ of money which will cause the interest rate to ________
A) supply; fall B) supply; rise C) demand; fall D) demand; rise