Question

Why it is important the markets and welfare in economy

Answer 1

As we know that, Economics is important for many areas of society. It can help improve living standards and make society a better place. Economics is like science in that it can be used to improve living standards and also to make things worse. It has also helped reduce poverty and raise income (primarily through increases in earnings) in poor families. The economic expansion of the 1990s was surely not the only reason for declining welfare rolls and rising labor force participation, but it was an important component of those changes.

We are aware about markets, a market is a place where buyers and sellers can meet to facilitate the exchange or transaction of goods and services. Other examples include the black market, auction markets, and financial markets. Markets establish the prices of goods and services that are determined by supply and demand. Markets plays an important role in improving the welfare of the people. Markets are playing an important role in reducing unemployment in the economy. They helps in creating more job opportunities, and alsohelps in reducing the poverty thereby helps to increase welfare.In markets when two or more indviduals interact with one another, they engage in exchange of goods, services and information is called a market. Ideally a market is a place where two or more parties are involved in buying and selling. markets promote competition and they also generate economic efficiency.

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