For and Against Government Intervention

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  • Created by: izzy
  • Created on: 10-06-13 20:59

To understand why governments intervene in markets in mixed economies suc as the UK, it is useful to divide economists (and politicians) into two different groups, those that believe that unregulated markets generally work well, and those who argue that markets are prone to market failure. The former group are non-interventionists who want to leave as much as possible to market forces, while the latter group believe that government intervention can make markets work better.

Pro-free market economists see a market economy as a calm and orderly place in which the market mechanism, working through incentives transmitted by price signals in competitive markets, achieves a better or more optimal outcome than can be attained though government intervention. In essence, risk-taking business men and women who will gain or

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davidsalter

This brief page on whether the government should intervene in the economy should make a change from just reading when used with the test yourself facility.

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