Review questions Flashcards
1
Q
What are the principles of a market economy?
A
producers and sellers of goods and services will offer them at the highest possible price that consumers are willing to pay for goods or services
2
Q
Why do governments intervene in a market economy
A
to correct problems of market failure associated with public goods, external costs and benefits, and imperfect competition
3
Q
Why is canada viewed as having a mixed economy
A
he government intervenes in many ways to regulate the economy in order to maintain economic stability and prevent market failure
4
Q
What is the role of the consumer in market and mixed economies
A
the one who pays to consume the goods and services produced and has an effect on supply and demand
