Question

The core of most economics debates comes back to the three core questions that we are trying to answer (what to produce, how to produce and for whom to produce). Do you favor laissez faire approach or government intervention? Why? How does the government approach impact economic growth in the long run?

Answer 1

The core of most economic debate does come back to the three question and those questions are directly related to the market allocation of products, resources, profit etc. But historically, it has been seen that markets can fail and do fail, and without government intervention. The recovery g the market would be quite slow. The proposers g laissez-faire in macro economics state it as an essential feature g their approach and there by saying that the government intervention would worsen the situation. One can refer to the \r\n arguments of monetarists for that. They argue something like that as our ability g forecasting is far from a certainty, an interference in an automatic recovery would more likely to induce the elements to react adversely. The market does fail, even in laissez-faire in the real world, as the result g less intervention g government induces even naturally, the problem g moral hazard and economic corruption. A firm should