Question

There are many schools of thought that exist on what the role of government should be in our economy. Please offer your vision of what that role should be. List and explain any advantages/disadvantages that you see by the government getting involved in the economy. Also, should price discrimination be illegal? Why or why not?

Answer 1

Answer - The government should offer its services in the economy by expanding more and more of public sector . Through this the government will be able to offer goods and services to the public.

The advantage of such a step is that the government comes in competition with the private sector and hence the higher prices may be reduces.

The motive of government is to serve the public hence products are offered at lower prices.

The government can avoid the ill practises by the private sector and restore the faith in the market .

PRICE DISCRIMINATION should be illegal and fair price and equal price should be charged for each consumer. This is important in order to ensure the stability in the market otherwise the prices in the market may go up.

Also due to price discrimination there is widespread consumer exploitation hence it should be made illegal in order to avoid the concentration of the power in the hands of the seller.