Guiding questions Flashcards
1
Q
what are the principles of a market economy
A
the freedom for individuals to choose businesses, the right to private property, profits as an incentive, competition, and consumer sovereignty
2
Q
why do governments intervene in a market economy
A
The role of government is to correct problems of market failure associated with public goods, external costs and benefits, and imperfect competition
3
Q
what is the role of the consumers in mixed and market economies
A
In both systems the individual choices of consumers are an important economic force. They add up to create over all economic decisions for society.
