The price system accomplishes much for society that government could do but probably could not do...

The price system accomplishes much for society that government could do but probably could not do as well. Explain

Solutions

Expert Solution

The aim of the society is to maximize its welfare. there are various goods and services for which government intervention is required because the price system is unable to maximise social efficiency. However for other goods and services, the market forces of demand and supply interact with each other to ensure that there is an equilibrium in the market at which the production is done at least cost. This also ensure that resources are not wasted and that efficiency is maximized. when this happens that society achieves maximum total surplus which is not possible under government intervention

Price system is based on the independent forces of demand and supply that are sometimes termed as the invisible hand of the market. Sometimes government attempts to benefit one section of the society in terms of price controls, which results in reducing the overall welfare of the society. It is in this sense that price mechanism accomplices much for the society relative to what government can do.

Rahul Sunny answered 1 month ago

Next > < Previous

Related Solutions

The Agricultural Society persuades the government, in the interest of food security, to impose a price...

The Agricultural Society persuades the government, in the interest of food security, to impose a price floor on local carrots in order to keep carrot farmers in the business. (a) Assess the welfare implications of this measure. (b) Assess the effectiveness of this measure in keeping farmers in carrot farming.

Consider equality as a potential goal for society. Discuss how this could be obtained through Government...

Consider equality as a potential goal for society. Discuss how this could be obtained through Government action. Does the action depend on the intent to reduce poverty or increase equality? Suppose equality increasing efforts were put to a majority-rule vote by the population, “yes” meaning more equality efforts. Why might we see the vote have a different yes percent vote than the percent of the population who would prefer more transfers? Is there evidence to support that this could/does happen?

what do you think could be done to reduce violence in society?

Question 2 - Price Floor The Agricultural Society persuades the government, in the interest of food...

Question 2 - Price Floor The Agricultural Society persuades the government, in the interest of food security, to impose a price floor on local carrots in order to keep carrot farmers in the business. (a) Assess the welfare implications of this measure. (b) Assess the effectiveness of this measure in keeping farmers in carrot farming. Learning Activity 5.2: Taxation Question 3 - Taxation Suppose the federal government requires beer drinkers to pay a $2 tax on each case of beer...

What could the government do to ease the transition to an automated economy?

-Could culture and political economy be combined in the study of our current society? -Do Marx...

-Could culture and political economy be combined in the study of our current society? -Do Marx and Durkheim agree or disagree on the division of labor? -Durkheim’s idea of “social divisions of labor” compared to Ibn Khaldun and Adam Smith theory of DoL? -Difference between “organic” and “mechanical” solidarity and the types of economy/market and state that correspond to each type of solidarity? -Revise Smith’s theory of self-interest and how you’d criticize it using cultural practices? -Revise the elements of...

What do you believe that could be done to decrease violence in society? -Answer should be...

What do you believe that could be done to decrease violence in society? -Answer should be long please. -Answer by keyboard not by handwriting please

What would happen if the government set a ceiling on the price of gas? What could...

What would happen if the government set a ceiling on the price of gas? What could change in supply and demand, would you end up better off since the price is low, or would you end up without any gas because there is a shortage? Would it be feasible to think that doing so would lead to black markets?

g) What COULD the government of Britain do in order to achieve this goal in the...

g) What COULD the government of Britain do in order to achieve this goal in the case of “free” medical care ? Please give two or three options. h) What SHOULD it do, in your opinion? Why? i) HOW IS MEDICAL CARE DELIVERED TO THE PEOPLE IN OUR COUNTRY? What are some of the various programs, and which groups of people are covered by each program? J) The Trump administration just took steps to block some Americans for signing up...

“society could only exist in so far as individuals accepted limits on their freedoms.” What do...

“society could only exist in so far as individuals accepted limits on their freedoms.” What do you think of this idea? Be specific. Can you give an example of limits on your freedom that are necessary for society?

Subjects