Answer: The answer is by negotiating affordable rates with a supplier. Explanation: The government helps ensure fair prices for all citizens by negotiating affordable rates with a supplier.

Why is it important for natural monopolies to exist?

Why is it important for natural monopolies to exist? They help the consumer decide among several suppliers for a necessary service. They make it more efficient to deliver necessary goods and services to consumers.

How does the US government promote economic growth?

The U.S. government influences economic growth and stability through the use of fiscal policy (manipulating tax rates and spending programs) and monetary policy (manipulating the amount of money in circulation). This stimulates demand and encourages economic growth. Cuts in government spending have the opposite effect.

How does the government help ensure a fair prices for all citizens of a particular area served by one utility company quizlet?

How does the government help ensure fair prices for all citizens of a particular area served by one utility company? Quantity demanded will exceed the quantity supplied. You just studied 20 terms!

When government sets a price for a good above equilibrium there will be?

A price above equilibrium creates a surplus. At this price, the quantity demanded is 500 gallons, and the quantity of gasoline supplied is 680 gallons. You can also find these numbers in Table 1, above. Now, compare the quantity demanded and quantity supplied at this price.

How does government deal with monopolies?

There are 3 major methods to increase the benefits of monopolies to society: removing or lowering barriers to entry through antitrust laws so that other firms can enter the market to compete; regulating the prices that the monopoly can charge; operating the monopoly as a public enterprise.

How does the government enables government monopolies to exist?

Government monopoly refers to a type of coercive monopoly that has high entry and exit barriers and is designed to protect the rights of innovative businesses and consumers. Government enables monopolies to exist by creating and operating a monopoly in the economy.

How does the government promote economic strength and stability?

Growth. Another way to show economic stability is the health of the nation’s financial institutions. The federal government monitors and regulates American banks and other financial institutions by producing hundreds of regulations to protect people from fraud and sudden economic downturns.

Why is the government important to the economy?

By setting rules and regulations, governments create the framework in which markets operate. But governments can also regulate the economy in more behind-the-scenes ways, like establishing property rights, issuing money, and regulating the stock market.

How does the government control the economy?

Some of the most common ways that a government may attempt to influence a country’s economic activities are by adjusting the cost of borrowing money (by lowering or raising the interest rate), managing the money supply, and controlling the use of credit. Collectively, these policies are referred to as monetary policy.

Which describes a benefit from government regulation of a natural monopoly?

Which describes a benefit from government regulation of a natural monopoly? Livy’s gas utility bill does not go up during a natural gas shortage. The government increases taxes. Lower the income tax, which gives citizens more money to spend, and buy more services from civilian-owned businesses, which creates more jobs.

What will happen if the government sets the price for potatoes at point B?

Terms in this set (25) Decreases the inflation rate. In the diagram above, what will happen if the government sets the price for potatoes at Point B? There will be a shortage of workers. 14.

Why does the government create regulatory laws that businesses must follow?

Why does the government create regulatory laws that businesses must follow? To provide services and protection to citizens.

Which of these is not a result of the federal government spending more than it earns budget deficits budget surpluses increased national debt increased taxes?

The correct option is: B) Budget surpluses One more reason for the budget deficit is increased national debt and increased taxes, which will lower their earnings, enhance expenses.

What economic condition usually accompanies a period of strong economic growth?

Expansion is the phase of the business cycle where real gross domestic product (GDP) grows for two or more consecutive quarters, moving from a trough to a peak. Expansion is typically accompanied by a rise in employment, consumer confidence, and equity markets and is also referred to as an economic recovery.

Which organization sets monetary policy for the United States?

Monetary policy in the United States comprises the Federal Reserve’s actions and communications to promote maximum employment, stable prices, and moderate long-term interest rates–the economic goals the Congress has instructed the Federal Reserve to pursue.