Why is the formulation of strategy an objective requirement of China s market economy?

Because according to the principles of modern economics, the market is not always efficient, and sometimes there will be market failures.

Manifestations of market failure: monopolies, externalities, inadequate information, inequitable income distribution, uneven economic fluctuations, and inadequate provision of public goods.

We hope you find the following information helpful:

Market failure. Market failure refers to the inability to achieve optimal allocation of resources through the allocation of resources through the market. It is generally accepted that the causes of market failure include monopolies, externalities, public goods and incomplete information.

The shortcomings of the market mechanism in allocating resources are manifested in the following aspects:

1) Unfair distribution of income and wealth.

This is because the market mechanism follows the principles of capital and efficiency. The principle of capital and efficiency exists again"The Matthew Effect"。From the perspective of the role of the market mechanism itself, this is a normal economic phenomenon, the more capital is owned, the more advantageous it is in competition, the greater the possibility of improving efficiency, and the more income and wealth are concentrated in capital and efficiency; On the other hand, the expropriation of their employees by the capitalists has led to further impoverishment of some people, resulting in a further increase in the distribution of income and wealth.

2) The problem of external negative effects.

Negative external effects refer to the damage caused by one subject to other subjects in the process of production and consumption activities. The negative external effect is actually the externalization of costs in the process of production and consumption, but in order to pursue more profits or interest rate differentials, the production or consumption unit will allow the occurrence and spread of the negative external effect.

3) Failure of competition and the formation of market monopolies.

Competition is the driving force in a market economy. Competition is conditional, and generally speaking, competition is between similar products or alternative products in the same market. However, on the one hand, due to the development of the division of labor, the differences between products have been widening, and the expansion of capital scale and the increase of transaction costs have hindered the free transfer of capital and free competition.

On the other hand, due to the emergence of market monopolies, the degree of competition has been weakened, and the role of competition has declined. The main factor that causes market monopoly. technological advancements; market expansion; Mergers and acquisitions of enterprises to gain economies of scale.

Once a firm's profitability depends on a monopoly position, competition and technological progress are inhibited.

4) Insufficient supply of public goods.

Public goods are products that are non-exclusive and non-competitive in the process of consumption. The so-called non-exclusivity means that when such products are produced, the producer cannot exclude the consumption of others who do not pay. Because of this exclusivity, on the one hand, it is technically impossible, and on the other hand, it is technically possible, but the cost of exclusivity is higher than the benefit of exclusivity.

According to the principles of modern economics, the market is not always efficient, and sometimes the market is ineffective, and at this time, it is necessary to have a strong hand to intervene in the adjustment.

Because the market economy has its own flaws. It needs to be compensated for by macro control.

The characteristics of economic strategy are that the content is directional and principled.

a.Expansive.

b.Contraction.

c.The period is long.

d.Openness.

Correct answer to the hall waiter orange rent: c

1.Proceeding from the actual situation of our country, we briefly discuss what economic functions should be done well under the conditions of market economy.

Proceeding from the actual situation of our country, we briefly discuss that under the conditions of market economy, the following economic functions should be done well.

1. Macroeconomic regulation and control, as the manager of the market economy, should guide and standardize market behavior when necessary through macroeconomic regulation and control, and maintain market stability. In exceptional circumstances such as economic crises, necessary fiscal and monetary policy measures should be taken to promote economic recovery and growth. Second, the public and bucket wheel service, ** should undertake certain public service functions, such as education, medical care, social security, etc., to meet the basic needs of the people.

In addition, infrastructure construction should be strengthened to improve the country's overall competitiveness. 3. Market supervision, market supervision should be strengthened, relevant laws and regulations should be improved, and illegal acts such as monopoly, fraud, and false propaganda should be cracked down on, and the legitimate rights and interests of consumers should be protected. Fourth, industrial support, through industrial support policies, encourage and support the development of domestic industries, improve core competitiveness, and promote economic growth.

Under the conditions of market economy, it is necessary to promote economic development and maintain market order through effective macroeconomic regulation and control, provision of public services, strengthening market supervision and industrial support.

The formulation of economic development strategies must have a scientific basis, generally speaking, mainly in the following aspects:

1. Basic national conditions. In formulating an economic development strategy, it is necessary to proceed from the various basic conditions of the country that are closely related to the economy and society, so that the determination of strategic objectives and the selection of development channels conform to objective conditions and are based on the actual conditions of the country. The specific content of the national situation includes:

1) Natural resource conditions. There are mainly land, water resources, biological resources, mineral resources, renewable energy resources, geographical location, climate and other conditions.

2) Demographic status. The population includes the quantity, quality, composition, employment and other aspects of the population. People are both producers and consumers, and when formulating economic development strategies, it is necessary to give full consideration to the duality of the value of the population, and when making policy decisions, it is necessary to combine the current situation of the population with the economic and social conditions of the developing countries.

3) Economic conditions. The main factors include the level of development of productive forces, industrial structure, infrastructure, residents' income and consumption level, science, technology, and education. This is an important manifestation of a country's economic strength, and it is also the basis for formulating an economic development strategy.

4) Economic and social structure. It mainly includes socio-economic components, management systems, political systems, etc. Some of these factors stipulate the situation and direction of economic development, some affect the motive force and ways of economic development, and some play a restraining role.

Therefore, comprehensive consideration should be given to the study and formulation of economic development strategies.

5) The level of scientific and technological development. The impact of the current level of scientific and technological development on all aspects of social economy is becoming more and more prominent, so it is also necessary to fully consider the potential impact of scientific and technological development on the future when formulating social and economic development strategies, and evaluate and adjust development policies in other fields accordingly.

2. Objective laws. The formulation of economic development strategies must conform to the requirements of objective laws, which are intrinsic, essential, and inevitable links between social and economic phenomena and their movements. Therefore, in formulating economic development strategies, we must be good at studying and summing up practical experience, find out the regularity of economic development from economic practice, and make scientific policy decisions.

3. International environment. The international political and economic situation and conditions have a major impact on domestic economic development. In today's world, the internationalization of production has strengthened Qilu, and international economic relations are becoming increasingly close.

The international environment includes international relations, international financial capital transfer, technology transfer and commodity transfer, international labor market, international economic structure, etc.