Outline and explain two basic motivations for government intervention in the economy.

Expert Solution

ANSWER:-

Outline and two basic motivations for government intervention in the economy.

☆In an unreservedly serious market, there is no government intervention. All is well by the market instrument. They received leissez reasonable strategy. The two inspirations for the government to intervention in the market is.

a). To expand social government welfare.

It is the most significant objective of the government. So as to augment social government welfare, government attempts to control grouping of wealth and influence in the hands of the individuals. What's more, ensure the accessibility of most prominent useful for most greatest number.

b). To guarantee productivity.

To guarantee productivity national solidarity and give fundamental systems and so on are different thought processes of the government . A definitive target of the government is to amplify social government welfare as opposed to benefit like private firms. They may likewise intercede to advance general economic reasonableness ( fair dispersion).

PLEASE UPVOTE.

Rahul Sunny answered 6 months ago

Question 2 (80 marks) (a) 20 marks Outline and explain two basic motivations for government intervention...

Question 2 (a) 20 marks Outline and explain two basic motivations for government intervention in the economy. (b) Illustrate and explain how the two fundamental theorems of welfare economics describe the relationship between competitive markets and Pareto efficiency. (c) Explain the equity-efficiency trade-off in economics.

What are the two basic functions of government in the macro-economy?

Explain the difference deemed appropriate for government intervention in addressing the state of the economy between...

Explain the difference deemed appropriate for government intervention in addressing the state of the economy between Keynesian and Classical theorists. Do they have a sharply different perspective on the role of the government and if so what are the positions of each group regarding using government intervention to affect the state of the economy. Were the actions taken thus far by the federal government to address the dire impact of Covid19 on the state of the economy more Keynesian or...

Assume an economy which has no government intervention and with only two individuals, Mark and Tom,...

Assume an economy which has no government intervention and with only two individuals, Mark and Tom, who produce fish and sugarcane using the resources they have namely labour and capital (assume natural resources to be given). With the aid of well labelled diagrams, use the benchmark model to show a situation where production activities are Pareto optimal in the above mentioned economy.

State and explain three reasons for potential government intervention in cases of market failure government intervention...

State and explain three reasons for potential government intervention in cases of market failure government intervention – provide an example for each of the three reasons you identify

In an economy with limited or no government intervention, resources tend to be optimally distributed. With...

In an economy with limited or no government intervention, resources tend to be optimally distributed. With appropriate example, explain how this happens. (Make sure to provide a good example and your response should be at least 6 sentences).

In the Austrian View, in a market economy without government intervention, if there is an unusually...

In the Austrian View, in a market economy without government intervention, if there is an unusually large number of unemployed workers looking for a job without success Select one: a. The market wage rate will increase, giving an incentive to many of the workers to accept a new job, and as a result, the labor market will clear rather quickly. b. The situation will last for a long time, because of the downward stickiness of the wage rate, unless the...

Discuss the difference in Government intervention in the economy that has been brought forward as a...

Discuss the difference in Government intervention in the economy that has been brought forward as a result of the Great Depression to today. Use specific examples and write a summary of your findings.

Explain why government intervention is important to stabilize the market?

Explain why government intervention is important to stabilize the market? Due to the Covid-19 pandemic, the government of Malaysia has introduced several initiatives since April 2020 and Malaysia Budget 2021. Discuss how these initiatives give impacted you.

Adam Smith was against government intervention in the economy but they 2 areas that he encouraged...

Adam Smith was against government intervention in the economy but they 2 areas that he encouraged government intervention what are they?

Question