Question

How does the government save poor from exploitation of the market?​

Answer 1

Answer:

Overcome market failure – Markets fail to take into account externalities and are likely to under-produce public/merit goods. For example, governments can subsidise or provide goods with positive externalities. Macroeconomic intervention. – intervention to overcome prolonged recessions and reduce unemployment.

Answer 2

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●Answer●

Overcome market failure – Markets fail to take into account externalities and are likely to under-produce public/merit goods. For example, governments can subsidise or provide goods with positive externalities. Macroeconomic intervention. – intervention to overcome prolonged recessions and reduce unemployment.

☆Explanation☆

The government tries to combat market inequities through regulation, taxation, and subsidies. ... Examples of this include breaking up monopolies and regulating negative externalities like pollution. Governments may sometimes intervene in markets to promote other goals, such as national unity and advancement.