Standard 4 Economics Project

By: Ryan Jobman

How does the United States Government promote and secure competition in a market economy?

The first way the secure competition is they offer incentives to companies. They also go to great lengths to ensure that there are not any monopolies in the economy. Lastly, they give opportunities for entrepreneurs to grow their new ideas and businesses. By doing the things listed above the government is able to maintain and promote competition in the economy.
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How does the United States Government promote equity in a market economy?

The government promotes equity by in many ways. The first way is by providing public services. Another way is that they try to favor their spending on poor people. They also provide services such as welfare, and social security. To get the money that they need to do the things listed above they tax the people of America.
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How does the United States Government resolve externalities and other market failures in a market economy?

Public policy makers employ two types of solutions to resolve problems associated with negative externalities. The first being a price policy, which is a "Corrective tax or subsidy equal to marginal damage per unit." The second is a quantity regulation, which is when "Government forces firms to produce the socially efficient quantity."

How does the United States Government use regulations and deregulation policies to affect consumers and producers in a market economy?

The government regulates and controls private enterprise in many ways in order to ensure that business serves to the best interest of the people of America. Normally considered necessary when a business has a monopoly on a part of the economy. This regulating allows businesses to make a nice profit without raising prices to an unfair height. By doing so the government is protecting other small businesses and the consumers of America.