What are the principles of a market economy?

29/04/2011 12:40
A market economy is having perfect competition where supply exactly meets demand in a free market. Equilibrium is the wanted outcome in a free-market where demand exactly equals supply, so everyone who wants one good just has it all supplied by the producers of who made that good.

Why do governments intervene in a market economy?

29/04/2011 12:43
The government intervenes when the market fails to satisfy what the consumers need/want. (That's called a market failure) As well as when they feel the consumers are not being treated fairly. It is at these times that the government needs to intervene.

Why is Canada viewed as having a mixed economy?

29/04/2011 12:51
Canada is viewed as a mixed economy because not only the government in Canada makes choices for the country but citizens also get to give their opinion about what is best for Canada. The government helps the market in many ways such as health care, environmental care, education, etc. In order...

What is the role of the consumer in market and mixed economies?

29/04/2011 13:17
In both systems the individual choices of consumers are an important economic force. They add up to create over all economic decisions for the society. In a mixed economy, the consumers choice mostly affects the economic decision, but, in a market economy, all their choices affect the economic...

To what extent do consumer actions reflect individual and collective identity?

29/04/2011 13:27
When a product, such as a certain brand of clothes, is bought more than other products and brands, then that product will continue to have more and more made of it. The way this reflects the individual and collective identity is that, it shows what people want or don't want (likes and dislikes)...

How has the emergence of labour unions impacted market and mixed economies?

29/04/2011 13:29
The coming of labour unions has helped in market and mixed economies, because it causes the companies to treat their employee's better. With labour unions, employee's can demand better workplace safety, working hours, wages.. etc. Because of unions, labour laws have been brought up in certain...

What are some similarities and differences in the way governments in Canada and the United States intervene in the market economies?

01/05/2011 21:33
Differences:            - Canada - Canada is mixed economy. - Some resources are publicly owned and some are privately owned. - Individuals and government both make decisions, and influence economic decision making. More social services such as...