Question

1. Explain that equity and efficiency are the main recurrent theme of policy making

2. With two factors discuss why policy makers behave the way they do.
3. Explain the Efficient Market Classification and discuss its role in policy making

With two factors, explain how efficient policy instruments are selected

Answer 1

1. Efficiency and equity are trade-offs when there is the maximization of productive efficiency this leads to a reduction in its equity. Normally policymakers project efficiency in allocation whereas equity in distribution. there two will enhance the decision-making process of a policymaker more efficiently. Both will represent the importance of others in policymaking.

2. The first factor is a social, political, and economic factor that influence policymaking the most. here social structure, political condition whether it is stable or unstable, and finally economic condition will decide what type of policy should be prepared for a particular aspect. The second factor is the legal framework that defines the law and regulation regarding the situation and the policymaker is also bounded to the legal framework so it has a greater impact on the policymaking.

3. Efficient market classification defines as similar to the efficient market hypothesis that is the market is efficient in terms of strong, semi-strong, and weak. strong define as all information about the stock price for public, or private. semi-strong is defined as some price information is not clear enough. weak define the poor price information which will not help to justify the purpose.

Defining the role of policymaking is most important as it defines the implications and the effectiveness of the policy. now we can take two factors like social, political, and economic factors that define the base of the policymaking and the points for policymaking. what, how, and when that point defined by the policy objective. the second one is the law framework, which defines the legal limitation and the facility to prepare a policy.

the efficient policy instruments are those which define how to overcome a problem and how to optimize the result. It is very difficult to determine a new strategy for implementation. To start with a new project we need to gerther all the possible instrumets and then one by one we needto considert interms of its strength and weakesses. so the instrumeth is having more positive contribution that can be choosen fo rthe policy making. this process is little orthodx and time taking but more effective if we will go th SWOT analysis.