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Ill give 10 points for who answers me this asap! about economics? |
when would a government want to act as a producer of goods or services okay I understand that, however there are sometimes companies in the public sector such as water companies, government keeps them in the public sector to prevent monopolies and that people can raise prices that is one of the reasons why government would do that and there are some other cases but I can't think in any of them to protect consumers from unfair monopolies A government-owned corporation or government granting of a monopoly is a positive thing when it is in a natural monopoly industry. An industry is considered to be a natural monopoly if one firm can produce goods and services at a lower total social cost then two or more firms could. This would occur if there is economies of scale in social costs. Governments provide many goods and services.. Many programs exist to help the poor and provide a safety net. Governments should act to provide services for defense, health care, protection of the environment, and basically any other service that we cant count on private industry to provide.. Ok, so think about this: Communist governments like to control all aspects of citizens' lives, and a government will start to produce things when there is a national crisis, such as national disaster, famine, or drought. Name one government that produces ANYTHING other than higher taxes. Commies dont count, their slave comrades produce the goods and services. government never produces anything ever. they take money from people who do. but a command economy is when the government dictates what will be made. when it is a communist government. When its population wants it to. |
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