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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

to provide free goods and services

to provide those goods and services that the private sector will think unimportant to provide

when the economy is weak

when there is no or less private sector investment

when the people are poor

when inflation is rising

during a recession

to avoid market failure in the form of negative externalities such as pollution

to control the production and consumption of some goods such as education and cigarettes

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.

Basically, if it is cheaper overall for one firm to do it, rather then have multiple firms compete, then it is a good thing.

Examples of this can include water lines or power transmission. It does not make sense to have multiple firms each building their own set of water pipes under a city, it would be much cheaper to have just one set of pipes we all share. Similarly, with power transmission, if makes more sense to only have one set of power lines, rather then each company having their own set of lines.

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..

Nevertheless, the government is the largest producer of goods and services and the list of services and goods is very large...

Ok, so think about this:
There is only a limited amount of gold in the world. Gold is the standard currency for every currency; you don't need to speak a certain language to understand gold. Now goods and services, those may never run out. Everyday people are producing new materials and improving on them, making some materials obsolete...and so on. Because of this, goods and services can be considered infinite.

Now...countries can take advantage of this by providing goods and services to other countries in exchange for gold. Lets say Country A (CA) produces X amount of leather goods and sells it to Country B (CB) for Y amount of gold. A couple years later, both countries have around the same amount of leather (leather production is rarely improved nor increased). On the other hand, miners are having a real hard time finding gold, since most of it was dug up. So the price of gold increase, CA is rich, and CB hasn't improved; in fact it might have lost money.

See what I mean? In the 1500s and 1600s this policy was called mercantilism; rich countries like Spain and France (very powerful) used it frequently to gain riches (in fact Spain was so rich that it caused inflation). Now we use capitalism. Hope I helped.

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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