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Tuesday, 9 November 2010

Unit 1: Free market Vs Mixed Economy

Venezuelan government intervention

On the continuum of the mixed economy, the government continues to move the Venezuelan economy towards the planned side of things. And they are not averse to letting the population know that it is for the better either!

The picture shows the price for a certain type of oil in Mercado Bicentenario, the new name for a chain of private shops that have been nationalised by the government.

There is the “fair” price of 4.73 Bfs and then the capitalist price of 7 Bfs along with the saving of 32% that Venezuelan citizens can thank their government for!



Questions:

How can the givernment charge a lower price than the market price?

How will this benefit society (if at all)?

3 comments:

  1. Thought you would like this one Bentz.
    http://www.econosseur.com/assets_c/2008/10/costbenefit.html
    Although...prostitutes don't usually demand jewellery.

    ReplyDelete
  2. And this:
    http://www.econosseur.com/assets_c/2008/12/BankLoanSwitchCartoon.html

    and this:
    http://www.econosseur.com/assets_c/2008/12/EconToiletCartoon.html

    ReplyDelete
  3. And have a look at this site, (although you've probably seen it, due to the Calvin and Hobbs cartoon strip being there which you showed us a few weeks ago).
    http://www.econosseur.com/economic-jokes.html

    ReplyDelete