Chapter 1, Problem 5DQ

Summary Introduction

To determine: Whether government participation in business system good or bad and the factors used to explain the position.

Introduction: A mixed economy comprises of both privately owned businesses and government or state owned entities. Both have authority of owning, producing, trading products in the nation.

Explanation of Solution

The following reasons supports whether government participation in business system good or bad and the factors used to explain the position:

The government must be associated with the economy otherwise the economy currently would be ruined. If the government did not control thing like trusts and restraining infrastructures then the enormous organizations in the United States would assume control and less than ideal demolish the free economy by disposing of all other rivalry and after that raising the costs to as high as they need.

Huge organizations are likewise less slanted to secure the American individuals then the administration and would mind less if the general population were enduring as long as they made a profits. The government contribution in the business framework goes about as an administrative instrument. This is helpful as it guarantees the general administration of the companies is overseen and cared for by the administration organizations. Stricter standards and government mediation would rule out extortion. Therefore, government participation in business system is good.