Why does even a free market economy need some government intervention?

Social Studies

2 answers:

alina1380 [7]2 years ago

7 0

Answer:

to provide for things that the marketplace does not address

Explanation:

The model of a free economy is good for consumers and firms. Firms are free to choose how, what and for whom to produce, and consumers have a chance to buy from whom to provide the lowest price. However, some government regulation is needed to prevent abuses such as cartel formation and to curb opportunistic practices. In addition, this is for the government to force firms to provide things that the market would not address if it were completely free, which are market failures. For example, a coal plant pollutes the environment and damages society as a whole. If there were no regulation, the plant would not care about the damage that its activity causes. Regulation exists for such a practice to be curbed. The negative externalities caused by this plant must somehow be remedied, this is through government regulation. Thus regulation solves problems that the market does not address.

ella [17]2 years ago

6 0

tHIS WILL INSURE A STRONG GOVERNMENT

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