By trading with others, people can buy a greater variety of goods or services. Markets Are Usually a Good Way to Organize Economic Activity. The opposite of this is economic activity that is organized by a central planner within the government. Governments Can Sometimes Improve Market Outcomes. When a market fails to allocate resources efficiently, the government can change the outcome through public policy.
Examples are regulations against monopolies and pollution.
A Country's Standard of Living Depends on Its Ability to Produce Goods and Services. Countries whose workers produce a large quantity of goods and services per unit of time enjoy a high standard of living. Similarly, as a nation's productivity grows, so does its average income. When the Government Prints Too Much Money. When a government creates large quantities of the nation's money, the value of the money falls.