Question

Too Big To Fail?

Your textbook addresses that "government officials can explicitly restrict competition" (375) and history demonstrates that self-interest and competition usually results in a discussion of the proper role of government regulation. Some individuals see a market economy as largely self-regulating (assuming there are enough firms competing in the market) while others argue that the government must take a more active role in regulating economic activity. Thus, the question lies in how much government control is needed to regulate the economy. Access the below video and respond to the below questions:

Too Big To Fail?

1. State your position to the following perspective: "Competition is not a way of giving power to companies, it's a way to give us power over them?"

2. In discussing the role of regulation in this week's chapter, is the purpose of government not to make everyone equal, but to give everyone the freedom to make choices on their own self-interest?

Answer 1

Competition within the market isn't to provide power to the businesses however power to the customers as a result of customers profit a lot of from competition within the market. because the demand for a specific smart rise, the producers can try and sell a lot of of that individual smart and therefore the competition can rise. This rise in competition of a specific product can decrease the worth of that smart. Thus, the customers profit a lot of from competition as they get to settle on high and higher quality of products or services for a less expensive worth.

2. "The purpose of presidency to not create everybody equal, however to provide everybody the liberty to create selections on their own self-interest" This sentence holds incorrect. Reason - associate social scientist believes that associate economy can best work once all the rational people act in their self interest. However, this may make to alternative problems like unequal distribution of wealth, environmental degradation, depletion of resources, etc. So, so as to correct that government intervention is needed. Thereby, the role of presidency isn't to provide everybody the liberty to create selections however to manipulate the forces and supply a legal and social framework to take care of a healthy competitive setting and stabilize the economy with evenhanded distribution of wealth
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