Question

In an economy in which decisions are guided by prices and individual self-interest, there is a potential to achieve efficiency in production. There is also a strong need for government intervention in the market. However, there is less efficiency than would be observed in a centrally-planned economy. Additionally, there is more need for a strong legal system to control individual greed than would be needed in a centrally-planned economy.

Name: in an economy in which decisions are guided by prices and individual self interest there isa the potential to achieve efficiency in productionb a strong need for government intervention in t 42086
Uploaded: 2019-09-06T18:09:33-08:00
Duration: 1 min 53 s
Channel: Ulysses Ng
Description: in an economy in which decisions are guided by prices and individual self interest there isa the potential to achieve efficiency in productionb a strong need for government intervention in t 42086

          In an economy in which decisions are guided by prices and individual self-interest, there is a potential to achieve efficiency in production. There is also a strong need for government intervention in the market. However, there is less efficiency than would be observed in a centrally-planned economy. Additionally, there is more need for a strong legal system to control individual greed than would be needed in a centrally-planned economy.

Added by Samantha M.

Principles of Economics

Gregory Mankiw 8th Edition

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Solved by Expert Ulysses Ng

09/06/2019

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In an economy in which decisions are guided by prices and individual self-interest, there is a potential to achieve efficiency in production. There is also a strong need for government intervention in the market. However, there is less efficiency than would be observed in a centrally-planned economy. Additionally, there is more need for a strong legal system to control individual greed than would be needed in a centrally-planned economy.