Should the Government increase, decrease or remain the same in its level of inte
ID: 1100318 • Letter: S
Question
Should the Government increase, decrease or remain the same in its level of intervention when it comes to mandating that companies provide product information to consumers? What happened to "caveat emptor" (buyer beware)?
Can you think of examples where the government does not intervene enough when it comes to consumer safety and product information? Examples where too much intervention is the case? Explain your answers.
How can consumers become better educated about the products they are considering for purchase? To what extent do you personally go to acquire the best information available?
Explanation / Answer
The greater the level of information available to a consumer the better he will be at making rational decisions. The entire premise of free market economy is based on symmetrical flow of information. Individuals cannot spend all their time and effort in figuring out the details of a product.
One sector where the government has let businessmen have a relatively free run is the finance sector. customers have no idea how fancy products work. Where and how of their money into doing what. It is like a giant black box.
One place where there is too much government intervention is in the Imported Fruits category with the government making it mandatory for import fruits to have exact specific details of their origin and variety. too much emphasis on something that is relatively safe.
Peer reviews are the best way to know the long term effects of a product. I always use google when i buy something for the first time.