What are the advantages and disadvantages of market regulation, and what are the disadvantages of ma

Advantages of market regulation: It is conducive to mobilizing the enthusiasm of many microeconomic entities and invigorating the economy; It is conducive to the timely realization of the flow and optimal allocation of social resources and the improvement of economic benefits; It is conducive to raising the overall level of social production relatively quickly.

In the case of complex economic relations, it has stronger adaptability, more significant advantages and higher efficiency.

Market regulation is the spontaneous regulation of economic operation by the law of value. That is, the fluctuations caused by changes in supply and demand, the distribution of social labor and means of production in various sectors, and the regulation of production and circulation.

In line with the objective requirements of the commodity economy, it can allocate resources in a relatively rational manner, so that the production and operation of enterprises can be directly linked with the market and promote competition.

The biggest disadvantage of the free market economy is that the individuals participating in the economy lose money in market behavior due to various reasons such as information asymmetry, resulting in inaccurate resource allocation and waste of social resources. If the market behavior of the economy in the market is guaranteed to be right, then there is nothing wrong with the market economy. The allocation of resources is excellent, the invisible hand is exerted to the extreme, and the social economy will not be wasted.

And then it was impossible. Because not every businessman is smart and does the right business. As for macroeconomic control, the gap between the rich and the poor, public resources, socio-economic and moral issues, etc., can be allocated by ** behavior.

It is difficult to solve the problem of long-term development of the national economy through simple market regulation. There are two scenarios here. First of all, in the market economy, each commodity producer basically makes decisions based on the first month, but the supply and demand relationship reflected by the market economy is often short-term, and cannot reflect the requirements of the long-term development of the national economy.

If producers are allowed to make decisions according to such changes, it is likely to be detrimental to the long-term development of the national economy.

Function: Regulate the supply and demand of goods:

When a certain commodity is in short supply, then **, when the demand for the commodity decreases and the supply increases; When the supply of a certain commodity exceeds demand, ****, causing an increase in demand and a decrease in supply. Regulate the distribution of economic resources among various sectors of society, regions and enterprises. Regulate the distribution of material benefits among different interest groups.

The above content reference: Encyclopedia - Market Regulation.

First, the shortcomings of the market economy:

1. Leads to unfair resource allocation and malicious plunder;

2. Leads to unfair social management, unfair justice, and unfair governance;

3. Unfair and polarized income distribution;

4. The state and local governments are for GDP, and the people are just for money, and ideals and beliefs cannot be discussed;

5. Social unrest and rout.

Second, the shortcomings of market regulation:

1. In the allocation of resources, there is a certain blindness and limitations, which leads to vicious competition and short-term behavior, leading to economic crisis; At.

2. In the distribution of income, it will cause unfair social distribution and aggravate the contradiction between the rich and the poor;

3. In terms of ideology and social life, negative phenomena such as money worship will occur. The economic crises of the capitalist world have repeatedly demonstrated this.

Market regulation is blind, spontaneous and lagging.

The disadvantage is that it is easy to produce crises, and how many times have you seen crises in that capitalist country?

Summary. The disadvantage is that the mechanism of market mediation is that the supply exceeds demand is low, and the supply exceeds demand when the demand is high, but it will only have an effective mediation effect for some consumer goods, but it cannot play this role for some rigid products, that is to say, the defects of market regulation are insurmountable. Market regulation has three defects: spontaneity, blindness and lag.

Although these three defects are inherent in the market, because there are two ways to allocate resources, in addition to the market, there is also a plan, and the rational allocation of resources can make up for the shortcomings of the market by relying on the state's macroeconomic regulation and control.

Can the drawbacks of market regulation be overcome?

The disadvantage is that the mechanism of market mediation is that the supply exceeds demand is low, and the supply exceeds demand when the demand is high, but it will only have an effective mediation effect for some consumer goods, but it cannot play this role for some rigid products, that is to say, the defects of market regulation are insurmountable. Market regulation has three defects: spontaneity, blindness and lag. Although these three defects are inherent in the market, because there are two ways to allocate resources, in addition to the market, there is also a plan, and the rational allocation of resources can make up for the shortcomings of the market by relying on the state's macroeconomic regulation and control.

Dear, you can find out.

Summary. Hello, the defects of market regulation are spontaneity, blindness, and lag. (1) Spontaneous reasons:

Spontaneous Adjustment of the Law of Value (2) Blind Reasons: It is impossible to grasp the information of all aspects of the market and cannot control the trend of economic changes (3) Lag Reasons: Market adjustment is a post-event adjustment.

What are the shortcomings of market regulation?

Hello, the defects of market regulation are spontaneity, blindness, and lag. (1) Spontaneous causes: spontaneous adjustment of the law of value (2) Blind causes:

It is impossible to grasp the information of all aspects of the market, and it is impossible to control the trend of economic changes (3) Lag reason: market adjustment is post-event adjustment.

Summary. Hello, dear. We're happy to answer your <>

There are three pros and cons of market regulation: 1. Blindness: Producers and operators under the market economy cannot fully grasp market information, and business decisions made by one-sided information are blind; 2. Lag: Market participants' commodity supply decisions occur after the commodity has risen and fallen with the change of market supply and demand; 3. Spontaneity:

Producers and operators make business decisions according to the ups and downs of the market economy to maximize their own interests, but the market will spontaneously produce some harmful products.

Let's talk about the pros and cons of market regulation.

Hello, dear. We're happy to answer your <>

There are three pros and cons of market regulation: 1. Blindness: Producers and operators under the market economy cannot fully grasp market information, and business decisions made by one-sided information are blind; 2. Lag: Market participants' commodity supply decisions occur after the commodity has risen and fallen with the change of market supply and demand; 3. Spontaneity:

Under the market economy, producers and operators make business decisions according to the ups and downs of the market to maximize the interests of Sohui, but the market will spontaneously produce some harmful products.

Profit: Market regulation takes interest inducement as the basic means, and fluctuates up and down with value as the center, so that the distribution of social labor among various departments is regulated, so that production and demand tend to be balanced; Market regulation can flexibly reflect and regulate the relationship between market supply and demand, guide production and consumption, and promote enterprises to produce and operate according to market demand; Blocking the fierce can promote enterprises to carry out competition, and the real simple stove bridge is now the survival of the fittest; It can stimulate the production enthusiasm of enterprises and workers, and make the economy vigorous and vigorous.

When the whole village saw it, they learned from Zhang San to get rich and planted watermelons together. In the second year, there were too many watermelons, and the market's ability to digest them was limited. Watermelons are unsalable, and they can't be sold cheaply, so they are left at home to rot.

The whole village was poor.

Blindness:Under the conditions of market economy, the participants of economic activities are scattered in their respective fields to engage in business, and it is impossible for individual producers and operators to grasp information on all aspects of society, nor can they control the trend of economic changes. This blindness often puts society in a state of inactivity, which will inevitably lead to economic fluctuations and waste of resources.

We can cite many examples in this regard, such as: since the mid-80s, various parts of China have been competing to produce color TVs and refrigerators, the so-called "electric heat" and "refrigerator heat"; In the mid-90s, there was "air conditioning fever" and "VCD fever". Because the manufacturers are aiming at the market, what is easy to sell will be produced, so all over the country "flocked", the result is repeated launch, repeated introduction, and can not form a production scale.

Hysteresis:In a market economy, market regulation is a kind of ex-post regulation, that is, participants in economic activities make a decision to expand or reduce the supply of a certain commodity only after the imbalance between supply and demand of a certain commodity has caused the supply of such a commodity. In this way, from the imbalance between supply and demand - ** change - making a decision - to achieve a balance between supply and demand, it is necessary to need a process of different lengths, with a certain time difference.

In other words, although the market is timely and sensitive, it does not reflect the long-term trend of supply and demand. When people compete to produce a certain product in pursuit of the best in the market, the demand for the commodity may have reached the saturation point, and the commodity producer is still there to continue to produce in large quantities. However, at this time, even if the production is changed, it has caused a backlog of products, and they have to be auctioned at a low price, and some fresh products will suffer huge losses due to deterioration (for example, in recent years, it is not uncommon for eggs and fruits in some cities to drop in price due to backlog and deterioration).