what role does the us government play with respect to market competition course hero

What role does the US government play with respect to competition?

What role does the U.S. government play with respect to market competition? Selected Answer: policing anticompetitive behavior and prohibiting contracts that restrict competition Answers: policing anticompetitive behavior and prohibiting contracts that restrict competition preserving competition by regulating price and/or quantity of output intervening in the price and output …

What is the role of government in a market economy?

Nov 19, 2020 · View Screen Shot 2020-11-19 at 10.43.08 PM.png from ECONOMICS 1209 at Santa Monica College. Question 18 What role does the US. government play with respect to market competition? It policies

How can the government move the market to the efficient level?

Question 28 2 pts What role does the US government play with respect to market competition? O A. policing anticompetitive behavior and prohibiting contracts that restrict competition O B. preserving competition by regulating price and/or quantity of output o C. intervening in the price and output decision of businesses O D. maintaining abundant

Does government intervention help in cases of imperfect competition?

One role of government is to correct problems of market failure associated with public goods, external costs and benefits, and imperfect competition. Government intervention to correct market failure always has the potential to move markets closer to efficient solutions, and thus reduce deadweight losses.

What is the role of government in the economy?

One role of government is to correct problems of market failure associated with public goods, external costs and benefits, and imperfect competition . Government intervention to correct market failure always has the potential to move markets closer to efficient solutions, and thus reduce deadweight losses.

Why is the theory of public goods important?

The theory of public goods is an important argument for government involvement in the economy. Government agencies may either produce public goods themselves, as do local police departments, or pay private firms to produce them, as is the case with many government-sponsored research efforts.

What are some examples of public good?

Answers to Try It! Problems 1 This is an attempt to deal with monopoly, so it is a response to imperfect competition. 2 Cigarettes are treated as a demerit good. 3 Protecting the earth from such a calamity is an example of a public good. 4 Food Stamps are a means-tested program to redistribute income. 5 Social Security is an example of a non-means-tested income redistribution program. 6 This is a response to external costs. 7 This is a response to monopoly, so it falls under the imperfect competition heading.

What is normative judgment?

In some cases, the public sector makes a determination that people should consume more of some goods and services and less of others , even in the absence of market failure . This is a normative judgment, one that presumes that consumers are not always the best judges of what is good, or bad, for them.

What is government revenue?

Government revenues include all funds received by government agencies. The primary component of government revenues is taxes; revenue also includes miscellaneous receipts from fees, fines, and other sources. We will look at types of government revenues and expenditures later in this chapter.

When are external costs imposed?

External costs are imposed when an action by one person or firm harms another, outside of any market exchange. The social cost of producing a good or service equals the private cost plus the external cost of producing it. In the case of external costs, private costs are less than social costs.

What are some examples of government purchases?

A city police department’s purchase of new cars is an example of a government purchase. Spending for public education is another example.