Economic system - 4 - Planned economic sytem

An economic system involving the role of government is called...

• Market economic system

• Planned economic system

• Mixed-economic system

• Free market economic system

Below is the disadvantage of a planned economic system

• Products quality are often poor

• Harmful goods might be produced

• Some firms may dominate the market

• Goods and services are produced to what is profitable

Below is the advantage of a planned economic system

• Wide variety of products

• Development of new method of production

• More equal treat for hired labor

• Frequent innovation of goods and services

Refuse collection and welfare service are examples of..

• Government monopoly program

• Government law and regulation

• Market failure condition

• Merit goods

Below is an advantage of having government intervention in the economic system..

• Goods and services are allocated to people who can purchase it

• Environment and people are more protected from harmful goods

• No tax, which means more profit

• Consumer may gain better quality of products

What are the use of laws and regulations?

Pick three options

• To protect consumer

• To protect employees

• To protect environment

• To protect goods and services

• To protect government's investors

Which of the following is not the advantage of government intervention?

• The government may produce public goods

• The government may create more jobs opportunity

• The government may avoid or correct any market failure

• The government may produce better quality of goods and services

Which of the following is not the nature (characteristic) of the mixed economic system?

• Creation of laws to make certain harmful goods illegal to stop its spreading

• Resource will only be employed if the profitable

• Laws and regulations to protect environment

• Provision of jobs, welfare payments for lower-income, and financial help to avoid bankruptcy

How does the government's intervention create a disadvantage?

• The government often applies higher taxes that result in the deduction of labor's wages and increased market price

• The government often makes regulation to control harmful products, making a shortage of certain harmful products

• The government create public facility to provide support for the needy

• The government create regulation protecting the environment

Write down two conditions of the market failure.

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Answer explanation

1) If firms fail to produce goods and services that are worthwhile for the consumer

2) If consumers might end up in wasteful or harmful activities