Standard Four Economic Project
How does the United States Government promote and secure competition in a market economy?
One may we promote competition is by offering incentives. We offer individuals the opportunity to give their ideas on saving money or to showcase an invention they've created. Knowing they have a chance to have their work or idea listened to and possibly accepted is a huge driving force for people. Companies, knowing they have individuals trying to out-do them, as well as other companies, work harder to better themselves and their products. This is how we create and maintain competition throughout or economy.
How does the United States Government promote equity in a market economy?
The biggest way our government promotes economic equity, or economic equality, is by allowing any person the ability to create a name for themselves in this country. Anyone willing to put in the time and work to make a better life for themselves is encouraged to do so and 100% have the capability to do it in America.
How does the United States Government resolve externalities and other market failures in a market economy?
One of the biggest market failures the U.S. has ever witnessed and helped bring back was our own, the Great Depression. When the stock market crashed and everyone was scrambling to sell their stocks and trying to go get their money out of the bank, they realized it was gone and there was no money to get back. The government, led by Franklin Roosevelt, was forced to step in and try to correct the nation. Numerous government programs were started to create jobs and create income flow back into the economy. This is just one way the government can step in to correct a market failure.
How does the United States Government use regulations and deregulation policies to affect consumers and producers in a market economy?
Regulations and deregulations are implemented to make consumers feel safe about the product or service they are receiving or purchasing. They are also there to provide incentives for the producers. If all regulations are met by a company, they could possibly receive a monetary reward for their cooperation and work. The producers feel the need to produce the best product they can and regulations help that, and they make the consumers feel safe with the product.