Concentration of Economic power

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what do you mean by concentration of Economic power?

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Economics payal patidar 10 months 3 Answers 237 views 0

Answers ( 3 )

  1. With the concentration of economic power, there has proceeded step by step an increasing exercise of governmental power – state and national. The use of this power has varied with the need. Political power is used to achieve federal supremacy and state control, as distinct from district, precinct, township or county, over human safety and welfare, roads and schools. It is an ever-changing but never-ending force, made up of. the activities and influence of all, not of men in public life. In our Country such concentrations seem the natural result of the growth of population and business. No personal leadership has created the situation,
    and the resolution of the difficulties inherent in their development depends upon the conclusions as to their social value.

  2. This comment is edited.

    In order to understand concentration of economic power, you need to first know about economic power.

    What is economic power?

    It is the power to produce and to trade what one has produced. In a free economy, where no man or group of men can use physical coercion against anyone, economic power can be achieved only by voluntary means: by the voluntary choice and agreement of all those who participate in the process of production and trade. In a free market, all prices, wages, and profits are determined—not by the arbitrary whim of the rich or of the poor, not by anyone’s “greed” or by anyone’s need—but by the law of supply and demand. The mechanism of a free market reflects and sums up all the economic choices and decisions made by all the participants.

    Now that you have understood Economic Power you can understand concentration of economic power-

    It is the condition of having sufficient productive resources at command that give the capacity to make and enforce economic decisions, such as allocation of resources and apportioning of goods and services.

    In a layman’s language, it is also termed as company’s ability to increase their prices profitably.

    Best answer
  3. In order to understand concentration of economic power, you need to first know about economic power.

    What is economic power?

    It is the power to produce and to trade what one has produced. In a free economy, where no man or group of men can use physical coercion against anyone, economic power can be achieved only by voluntary means: by the voluntary choice and agreement of all those who participate in the process of production and trade. In a free market, all prices, wages, and profits are determined—not by the arbitrary whim of the rich or of the poor, not by anyone’s “greed” or by anyone’s need—but by the law of supply and demand. The mechanism of a free market reflects and sums up all the economic choices and decisions made by all the participants.

    Now that you have understood Economic Power you can understand concentration of economic power-

    It is the condition of having sufficient productive resources at command that give the capacity to make and enforce economic decisions, such as allocation of resources and apportioning of goods and services.

    In a layman’s language, it is also termed as company’s ability to increase their prices profitably.

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