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State economy is a market, that is controlled by the government. Advantages of free market are: - the free market responds quickly to people's wants. Disadvantages of free market include: - factors of production will be employed only if it is profitable to do so. - the market system allocates more goods and services to those consumers who have more money than others.
State economy is a market, that is controlled by the government. Advantages of free market are: - the free market responds quickly to people's wants. Disadvantages of free market include: - factors of production will be employed only if it is profitable to do so. - the market system allocates more goods and services to those consumers who have more money than others.
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State economy is a market, that is controlled by the government. Advantages of free market are: - the free market responds quickly to people's wants. Disadvantages of free market include: - factors of production will be employed only if it is profitable to do so. - the market system allocates more goods and services to those consumers who have more money than others.
Drepturi de autor:
Attribution Non-Commercial (BY-NC)
Formate disponibile
Descărcați ca PPT, PDF, TXT sau citiți online pe Scribd
the type of economy, based on division of labors in which the price of goods and services are determined in a free pricing system. Set by supply and demand. History how government came into existence
Adam smith free market policy
The advantages of free market system are: - the free market responds quickly to people's wants. - the Market produces a wide variety of goods and services to meet consumer's wants - the market system encourages the use of new and better methods and machines to produce goods and services. The disadvantages of free market are: - the factors of production will be employed only if it is profitable to do so. - the free market can fail to provide certain goods and services. - the free market may encourage the consumption of harmful goods. - the social effects of production may be ignored. - the market system allocates more goods and services to those consumers who have more money than others. History how government came into existence Cause of free market • Rising prices, unbalanced wages and overbuying on credit were to blame. • The gap between rich and poor widened • By the late 1920s, American consumers were buying less • Economic downturn became known as Great Depression Great Depression
• The wealthiest 1% saw their income rise
75% • The rest of the population saw an increase of only 9% • More than 70% of American families earned less than $2500 per year Great Depression Increased government spending supported by theories of British economist John Maynard Keynes • Believed governments could limit, prevent economic downturns • Governments should spend money – Spending would help increase economic output – Factories would hire workers to meet new demand – Eventually workers would begin spending, depression would end • Government spending did help U.S. economy, but depression lingered through 1930s Government Response • Increased federal government’s role in lives of Americans • Pushed forward New Deal, program to fight Great Depression • Provided government spending to help start economic recovery • Public works programs to provide jobs, government money for welfare, relief • New regulations to reform, protect stock market, banking system CHINA ECONOMY China’s leaders call their economic system as “Market socialism” and also as “ state capitalism” and market-oriented mixed economy under one party rule”. facts • In 1978, china introduced farm reforms • In 1987, Chinese government set a goal to double the ‘Gross National Product’ from 1980, which they achieved before 1995. Facts…… • Its the effectiveness of the reforms, that made china’s economy successful over the last 30 years. • China is expected to surpass both Japan and US and become the world’s largest economy by 2022. Comparison India china • Agriculture. • Liberalization of market. • Difference in infrastructural & other aspects of economic growth.