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3 Cards in this Set
- Front
- Back
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Control of Monopolies |
Under Market System, consumers are exploited by monopolies. Through govt intervention,i.e in a Mixed Economy, the activities of such monopolies can be regulated. |
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Control of demerit goods. |
Demerit goods provided through the market are over produced and overconsumed. Govt intervention helps to control demerit goods like cigarettes,alcohol and dangerous drugs through higher taxes and laws against dangerous drugs. |
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Control of externalities |
Market System fails to take into account negative externalities like pollution. Govt intervention helps to control such externalities through taxes and laws. |
