Direct intervention of government in economy, Managerial Economics

Assignment Help:

Direct intervention 

The government can also intervene directly in the economy to see that its wishes are carried out.  This can be achieved thorough:

a.     Price and incomes policy

This is where the government takes measures to restrict the increase in wages (incomes)  and prices thus can be statutory or voluntary.

b.     Supply-side policies

These are policies to influence the economy by the productivity of the free market economy.  For instance unemployment can be controlled through supply side measures such as skills training, reducing social security payments, lessening the disincentives presented by taxation, facilitating the easier flow of finance to firms, removing firms, removing restrictive practices etc.

c.     Regional policies

These are policies designed to help the less prosperous regions.


Related Discussions:- Direct intervention of government in economy

Quality controls - importance of demand forecast, Quality and Quantity Cont...

Quality and Quantity Controls: Demand forecasting is a necessary and valuable instrument in the control of management of an organisation to provide finished goods of correct quant

Ramsey pricing in detail, Hi Could you please help me with " Ramsey pricing...

Hi Could you please help me with " Ramsey pricing in detail " as I have an assignment.

Economic cost, The economic cost Unemployment represents a terrible wa...

The economic cost Unemployment represents a terrible waste of resources and means that the economy is producing a lower rate of output than it could do if there were full empl

Uses of national income figures, USES OF NATIONAL INCOME FIGURES We...

USES OF NATIONAL INCOME FIGURES We need national income statistics to measure the size of the "National cake' of goods and services available for competing uses o

Determinants of price elasticity, Discuss the determinants of price elastic...

Discuss the determinants of price elasticity of demand

Show the efficient method of production, Technically Efficient Method of Pr...

Technically Efficient Method of Production Let's suppose that commodity X is produced by two methods by employing capital and labour: Factor inputs Met

Describe the application of economic theories, Describe the Application of ...

Describe the Application of economic theories Pertinent business decisions necessitate an unambiguous understanding of the environmental and technical conditions under which bu

Determine the negotiate a wage increase, Mark works for Maple Feel Inc., wh...

Mark works for Maple Feel Inc., which exports maple syrup to Slovakia. Currently, he generates $60,000 a year of net revenues for the firm and his salary is $60,000 per year. Mark

State the method of price elasticity of demand, Price elasticity of demand ...

Price elasticity of demand The price elasticity of demand is defined as the degree of sensitiveness or responsiveness of demand for a commodity to the changes in its price. Mo

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd