Standard Four Economics

Economic Systems and Macroeconomics: Crash Course Economics #3

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

In the United States competition is the optimal and efficient market mechanism that encourages producers and resource suppliers to respond consumer sovereignty. The United States passed two acts the Sherman Act in 1890 and the Clayton Act in 1913 to stop monopoly power and non-competitive behavior. United States regulates business behavior and promotes competition to keep businesses from becoming a monopoly company.

How does the United States protect private property rights in a market economy?

Property right Laws created by governments in regards to how individuals can control, benefit from and transfer property. The government makes laws to protect our right to own the property and resources on them. The social arrangements of the United States government are to protect ones property and be able to help protect the owned land and resources on it.

How does the United States promote equity in a market economy?

The United States promotes equity by passing acts like the anit-monopoly act. They make sure the market stays fair so no one rules the market in our economy by themselves. We have competition through out the market so we don't have companies becoming a monopoly. We have these acts to re-insure that the United States markets stay fair and stay safe from companies becoming monopolies, which promotes competition with in the market. They don't judge by race or age unless the prohibited sale of tobacco or alcohol to minors.

How does the United States government provide public goods and services in a Market Economy?

Public goods are economic products that are consumed collectively, like highways, sanitation, schools, national defense, police, and fire department. The government provides services like bread lines, soup kitchens, help to homeless, and help to low income families. The United States offers different things to help serve and protect American such as fire department, police, and army.

How does the United States government resolve externalities and other market failures in a market economy?

Under certain circumstances, negative externalities can be remedied through private negotiations. Coase externalities are externalities that — according to what is sometimes referred to as the Coase therom, named after Ronald Coase, the economics who presented the idea- can be prevented or compensated where property ownership is clearly defined, the number of people involved is a small, and negotiation cost are low.

How does the United States government stabilize and promote in a market economy?

In order to restore economic stability, policymakers must focus on restoring the institutional role of governing. Government can provide a stable environment for economic growth when it can be depended upon to maintain the stability of the currency, enforce and defend property rights, and provide oversight that assures private citizens that their transaction partners in the marketplace are held accountable.This will allow market participants to begin putting their resources back to work in the areas where they are most beneficial.

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

The government goes by Laissez-Faire which means Leave it alone. The government stays out of the market economy and let the producers and consumers stay in control of what is produced, how much is produced, and who will buy it. They have certain laws passed so no company can take control of the market economy. They make it to where the companies wont become a monopoly and that there will always be competition no matter what. The government stays out of the market for the most part, unless a a law or act needs to be passed to save the market from crashing or becoming a monopoly.
Laissez-faire - defined