Grade 8B Business
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- Government plays important role in the development of the country. Through various measures it directly or indirectly regulates the market activities.
- 5.1.1:Discuss up to what extent you are satisfied that government influence on the market increases productivity and efficiency in the country.
Last date for Submission:
April 20th, 2014
Please Write Your Response in 750 Words
Note:
Marks allocation for this article is 20.
Rubrics for Marks.
A. Theoretical Explanation 5 Marks
B. References. 5 Marks [Use Harvard referencing style]
C. Use of Key words. 5 Marks
D. Evidences in the support of explanations 5 Marks
Government play important role in the development of the country, government can act as a employer, producer, consumers, and regulator or controller. When government often act as employer, producer, consumer and regulator or controller, they bring advantages and disadvantages to some part such as firms and people. Here are some of the advantages and the disadvantages of it.
ReplyDeleteOne of the examples of the important role of government is in the achieving food security. They support the farmers in producing the foods, investment in agriculture and infrastructure and also support for open trade, one of the way is to enabling open markets this is to ensure food surpluses can reach areas of insufficient people. The trade also help to create jobs so that unemployment people can work and earn money to buy basic goods, support the local markets, and also help to increase the standard living of the people since they create jobs it means that the people can work and get money. Second government also play in investing in agriculture, there are greater investment in agriculture from the government or the public sector, this is to increase the global food production. Government helps by spending a greater proportion on agriculture, education and the promotion of agriculture, increasing the research and development of the agriculture and the agriculture technology, investment in transport and distribution networks and energy production and distribution. Third, reducing the environmental impact. Year to year the population continues to grow, they need to produce more food inorder to sufficient for all of the people. for this government can help by identifying the most environementally areas as unavailable for agriculture development, ensure the government support to producers to produce enough foods to all of the people, and government would also help by giving support of giving the technology to make them easier to produce foods.
When government acts as a employer, means they acts as a central government that include tax officials, bank Indonesia, arm forces such as army and air forces, government department, airport authorities. They also provide job security to the people which means they increase the efficiency of the people. they also acts a provincial government that provide education to the lower level of people so that they can still have an education while they don’t have enough money, they provide health care such as health centers in remote areas with cheap prices that have high number of sickness but low numbers of health cares, they also provide roads to the remote areas because in some remote areas they do not have roads to travel. Lastly, they also act as local government that provide cleaning and lighting in some village that do not have light and clean places.
Government acts as a producer means they provide include basic goods such as the example above, light such as PLN, roads, water management such as PAM, irrigation, mining, foresting, educations and they also provide research laboratories. When government acts a producer they produce goods and services for people, the price of the products will be cheap and the quality of the products was low.
Government acts as a consumers, means they buy goods from other firms such as food, clothes and shelters, while they also buy capital goods such as machines. Well of course the firms will be benefited in this way because the government will buy their products in large quantities so that the firms will get a lot of profits. Sometimes they buy it for buffer stock, it is a stock that is used for incase.
Government acts as a regulator or controller, this is the main role of the government. When government acts a controller, they control the pollution means they decrease the number of pollution in many ways such as planting more trees at the side of the roads, in the park, etc. they also increase will increase the health department since we also have many populations, government will also provide monopolies and restructive trade by making high prices so that people will think twice to buy the products means the government control.
ReplyDeleteso government also reduce inequalities in incomes and help vulnerable people by giving some support and other welfare payment to lower incomes, they also help vulnerable people by giving subsidies. They also manage the macroeconomy by increasing public spending during an economic recession can boost total demand and reduce unemployment.
But there are also disadvantages such as first, the production in harmful goods, sometimes government keep producing harmful goods because they have a lot of resources, example Indonesia have a lot of tobacco so they keep producing cigarettes so that their tobacco was used. Second, government should take a limited role in the economy while allowing private enterprises because it would eliminate the negative aspects of capitalism while adopting the positiveness of socialism. Third, too much government intervention in the development of the programme of a country leads to less variety and less freedom of choice in front of its citizen. Fourth, too much government outlays on development projects and result in greater public debts , greater inflation and less liquidity available for short run uses.
So in the overall conclusion, government have an important role such as act as a producer, consumer, employer and regulator. The government bring benefits and can increase the productivity and the efficiency in the country. Such as helping the vulnerable people by giving supports and subsidies, invest in infrastructure, provide goods and service, and manage the macroeconomy.
References:
http://www.cargill.com/wcm/groups/public/@ccom/documents/document/na3059663.pdf
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- Shelvina Gabriela 8B -
ReplyDeleteFirst of all, government is a group of people who were given the authority and has duty to govern a certain area or society. Government in society, act 4 roles, in order to make the market and community better than ever, they acted as an employer, a producer, a consumer and a regulator. Government influence the market of the country and an bring both advantages or disadvantages, its according to the government themselves.
First, government acts as an employer, its divided into three parts, central government, province government, and local government. In central government, the government employs the society to work and serve the country, they employ tax collectors. The taxation in Indonesia is determined on the residency. The money collected from the taxes paid by the firms and community, will be returned indirectly to the residence, for example is the taxes are used to build more roads, to make more free schools so the children from the low economy family can get educations too, the taxes also can be used as to subsidy the residence, like the oil in Indonesia is subsidied, so the people wont have to pay oil at a really high price. The other one is BI or Indonesia’s Central Bank, here all of the national price is decided. They give loans to big firms, and according to a central bank, if a person get a wage lower than $1.22 each day, they are considered as economically poor. Their objective is to make sure that the inflation in the country is low and keep it stable, the next one, the government also finance the armed force, they aare like the armies and the people who are in the military, trained to fight and protect Indonesia or their country till the end, the next one is the government department. The next one is the national airport, in Indonesia the national airport is SoekarnoHatta airport, the name was taken from the first Indonesia’s first president and vice president. Many flights are taken here, airports are located at a very big empty land. The next one is the province governance, here the government focus on increasing the quality of indonesian’s education, education is like everything, when Indonesian people are educated the country will eventually develop. But, since there are many poor families in Indonesia and that cause the parents cant send their children to school, and instead of sending them to school they asked their children to work to earn money to feed the family. So to change that, the government build many free schools and make a regulation about the people of Indonesia has to be minimum a graduate from high school. This way the quality of people will definitely make an increase of the country, the educated people will bring more machines and maybe firms so Indonesia will be an MEDC one day. The next one is health care, in Indonesia there are many people who died because of disease, and the disease wasn’t healed because the person didn’t have money to pay for the medicines. The next one is roads and fire station, its like public facilities which serves the people, but in Indonesia its not really good, we can take evidence from the roads, there are many holes and even in some residence the government put bricks to cover the holes, and the fire stations, they negotiate the price before saving the people and put out the fire, in the end the people who were trapped in the burning house died, the fire fighters came late. The last one is the local are governance, or district. Usually located in villages, government has duties to clean the areas and to give electricity there, but in real life there are many people from villages didn’t receive any electricity. But for years, these public facilities didn’t improve, why? Because if we work with government, we get a protection which is we won’t get fired and still get payment even if we don’t do our job properly, the government may have to dismiss the lazy people and replace them with people who have more responsibility. So, government employ many people which can reduce the unemployment.
The next one is governments acts as producers, they produce basic goods, which are the necessary goods which is needed by human beings in order to survive, ex: medicine, food, clothes and shelter. Government also taker over PLN, which generates electricity to the whole of Indonesia, too bad they have bad services, so there are many unsatisfied families yet they don’t improve their services but they keep increasing the price of the electricity. The governments also take care of the natural resources, for example like irrigation, mining, they dig mine to find fossil fuels, water management, by making a big dam, to prevent floods or drought, forestry and sea ports, used for harbor, where ships travels. The harbors are used to transport goods.
ReplyDeleteThe next one is, the government acts as consumer, here government accompany the sellers, example is farmer, they buy their crops when it’s the harvest time, the price will of the crops will decrease necause there are many supply and many customers, and then the government will keep the crops, and when the drought came the government will sell the crops.
The last one is govnment acts as a regulator, for example government control the pollution by planting more trees, so that more carbon dioxide will be turned to be oxygen, they also can do the activities such as go green! And they also increase the quality of health department, because when the quality is better, etch: hospitals/clinics, automatically the health of the people can also become better and then there will be less sick people, but even though the quality of health department is good, if the people don’t have money they will also cant buy the medicines, so usually there are some clinics who sell medicines and services of the doctors not at a very high prices, mostly is the government’s hospital. And government will also do monopolies and restrictive trade, to prevent the people to buy goods which they don’t really need to much, by increasing the price.
So government helps to increase the productivity and efficiency of the country, government helps a lot of less economically people, some people who lives in slums are moved to ”rumah susun” where they can have better facilities with cheaper price, government also give subsidy to the people. government can increase the country’s income by reducing the import and increase the export.
So the conclusion influence the market by becoming a producer, consumer, employer and regulator to keep balance at the market. they also help the less economically people by giving cheap or free services and goods.
Source: corner nb
Originality: 97%
Part 1
ReplyDeleteGovernment did an important role to a growth of a country, by various ways, government can regulate economy of the country. Now we’re going to discuss why and by what factors and reasons that government influence in a country’s market will increase and development of a country.
Government works to improve the economy by acting as a producer, consumer, regulator, etc. Let’s take a country, for example, Japan. Some people might wonder how a small country likes Japan with less resources compared to other countries like South Africa, Indonesia and other rich like resourceful country, but why does Japan has better products, country improvement compared to the countries listed above? This is due to government support to the people or citizen of the country. One of the examples is government buy products of their own citizen. Like Japan bought the citizen rice in high prices to motivate them to create better quality products. That is one of the reasons why Japanese rice are famous for its fluffiness. This is one of the example of Government as the consumer. An example of the government as a producer is that government creates jobs for unemployed workers to work in the industry. Like agriculture, factory, etc. This is done to decrease unemployment.
If the government works as a regulator, one of ways is to give more competition to monopoly markets to regulate prices/ means to stabilise prices in the market. One of the other ways is what we called as “buffer stocks”, what I meant by this is that government buy products that is already released in the market, but hadn’t been bought by the customers, will be bought by the government, to stop price falling due to surplus. But there still problems of this “buffer stock” price scheme, since the government gives ‘insurance’ to the market that gives bad products by buying the bad product, this will demotivate workers, since they believe that even though they create bad products, government will still buy the products. This will not solve the problem that occur in the first place that they create bad products that is not bought by the market. And actually by this, they try to increase the economy, instead getting the government more broke. Since if the government apply the system, they still need to prepare extra storage, costs of creating the extra storage-used building, insurance to the workers, and even the costs of applying the system. In total, the costs of all those expenses will be more expensive compared not to apply the system in the first place.
So by bullet point of the ‘buffer stock’:
Advantages:
• Low/ no changes of price falling in the market of the industry
• Economy will improve in the country
• Citizens will have better living due to good quality products that are good paid.
• Less Poverty
Disadvantages:
• Buffer stocks do not prevent the initial problem from arising.
• Costs of applying the system is less compared to the system output and if not using the system in the first place
• Demotivated Workers
• Have potential to “create moral hazard”
• Only works in condition that start with good products
Also a way to improve the economy of the country, government decreases imports and increased exports to decreasing tendency of civilian to use import-made products and instead using home made products will be eventually leading in a habit of using local made products. But there is always a minimum disadvantage of using this. We recall from chapter 2 about market economy. One of the types is that 100% is controlled by the government. Like what pretty much happens here, by banning imports, citizen will used products from the nation and the product in nation, usually in LEDC’s are pretty much bad, like super bad.
So by bullet points:
ReplyDeleteAdvantages:
• Cheap Products
• Improved Economy
• Better Standard of Living
Disadvantages:
• Low quality Products
• Usually in one area only being focused by the government
• Possibility of increasing stock problem
• Can cost more than output
• Hard to manage for big country
So the conclusion is that economy can be improved in a lot of ways, but plan the best so that there will be less or no side effects of applying the plan.
Source: Cornell Notebook,http://www.economicsonline.co.uk/Market_failures/Price_stabilisation.html
Originality: 96 %
Government is very important to a country , their tasks are very important in order for the country to develop . their roles such as they act such as to be a employer , produce ,consumer and regulator is very needed for the citizen and the country because it brings a lot of benefits to that certain country
ReplyDeleteFirst government act as a employer to help citizen to make more work forces and country to decrease country unemployment by ways such as first in central government they employ staffs for tax officers,staffs in government department BI,Armed force such as army,navy and air force and airport officers and many more and for the provincial government they open up job places such as school , healthcare , fire department and roads to employ people in that province that doesn't have any job and the good thing about this jobs government gives is that it is safe and your job will be secured so you wont get fired.
Besides from being a employer who decrease Indonesia unemployment and benefits people government also acts as a producer
Government act as producer creating basic goods such as electricity department such as PLN , roads , water management such as PAM, irrigation , mining ,foresting ,education and port services and government also will subsidized this basic goods such as fine example of what government of Indonesia do is by decreasing the price of oil
Government usually do stuffs that requires a lot of capital and many more and they also do jobs which monopoly the country which are basics goods because if a company who monopolies that basic good they will increase the price so high and will make dis benefit the people of Indonesia so government s really helping by producing the basic goods for our country Indonesia
Besides acting as a producer and a consumer government also act as consumer such as by this ways
ReplyDeleteGovernments acts as consumer by assisting supplier by buying their goods such as by buying their products for helping people such as school books , bags ,desks and chair for government school , protection clothes for armed force and armed forces government building and their office materials such as scanners and papers
sometimes government also sometimes buys the goods that farmers create for their own purposes to benefit their country such as if one country have a big agriculture government by selling it and if they have less agriculture products the following year they will still have enough funds
The last of what government do to benefit the country is by being a regulator or controller by regulating authorities
This is the last government also acts as a regulator of controller
By regulating authorities government control pollution levels of company so pollution levels will have limits so it would not be so high
Healthy department which they check their quality such as their machines and needles sterilization and many more and also by foods like Indonesia to check whether the foods can be consumed or not by checking the chemicals which those really helps to ensured to health of Indonesian people but actually they also control the monopoly of the country so that company which are in monopoly dosent increase the price of their product to high which also benefits the people so they don't buy the product to expensive but just pay the right price for it
So in my conclusion is that government is really important to a country economics because it helps because by government becoming a producer,consumer and employer it really helps the citizens of a certain country such as by government being a employer it decrease unemployment of the country and gives job security to the people of that country and second by government being a producer it produces certain goods which requires high capital and money and also will prevent monopoly of other company to be created and they will charge with subsidized prices and by being a consumer government will buy goods of suppliers in their country for stuffs that government do such as papers and books for government subsidized school which will gives profit to the people of that country and last is government acting as a regulator which maintains they price levels of company which are in monopoly and also checks for consumable foods which don't contains bad chemical for humans and pollution level and health department equipments so no bad things can happens to the sick people
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Sources:
Cornell notebook
All countries have their own government controlling the country. They help in processing the country’s money to develope the country, give subsidies and help the poor. Government will of course holds a very important role in a country. They have the biggest control of power in a country. Government have their own intervention in the country’s economy which may give benefit or losses to the country itself. They have certain roles that might help the country to develop well and even better.
ReplyDeleteGovernments have 4 roles in the economy. First of all, as a producer. Secondly, as a consumer. Third, as an employer and forth, as a regulator.
1) Government as a producer
Government helps in supplying cheaper goods and services. They help in selling goods and services in a cheaper price and which is affordable for all people to buy. They offer basic goods and services, like PLN. They provide basic needs like water management, irrigation, mining, forrestry and education.
2) Government as consumers
Government buy stocks of of other firms which help their financial. Government also buy goods and services from idividuals or small firms, like from fisherman and farmers, which help them complete their needs and stabilize their income. In this way, they help benefit the economy of the country.
3) Government as employer
Government hire civil workers to work for them in the central government, provisial government or local level (district). These people are hired to help develop and deliver government policies and government services to the country.
4) Government act as regulator. In this case, government have their own regulating authorities. They help in pollution controlling, health department and monopolies and restrictive trade (control the high price). In this case, government control the country by giving what’s best.
These authorities bring good affect to the country, of course. As they help develop the country by delievering government policies and services. Government intervene to make market more efficient, especially when it faces a market failure. They prepare for disaster situations, with the ability to deploy the man power and resources immediately. There can also be benefit when government intervenes to protect the open access resources, like water and air, resulting the reduce in globalisation and green house affect. Government can also give unemployment insurance, health incurance programs and social security. Also welfare programs, such as food stamps, housing and also other assistance programs including free cell phones. Which all help the poor society.
But not all government’s intervention can lead to benefits of the country. They can also lead to disadvantages for the country. Government intervention in the market could cause disruptions, including extending recession or depression in the economy of the country. Sometimes unexpectable things can also happen. Like for example, in the global financial crisis of 2007 to 2008, there are numerous interventions by governments. In the US, debate grew heated rgarding the government’s intervention in the market system, which cause the goal that was once to stablilize the markets into a reversal of high unemployment and prevent the second great depression. Because $850 billion economic stimulus and bill, also loans to keep auto manufacturers out of bankruptcy have been approved.
ReplyDeletePeople in the country pay for taxes every month, charges in restaurants, electricity bill, water supply, and much more. We pay this taxes, which will all be sent to the government to provide us all with services that we are suppose to receive. In this way, of course government will intervene and control the services given to us, like the water supply, electricity, roads and much more. But there are problems happening because of this. Corruption cause these people’s money to be reduce and we do not receive services that we should have received.
So, my conclusion is that in all countries, government’s intervention is needed. It will bring the country to a benefit but also losses. Government’s main goal is to develop the country and to deliver the government’s services well. But because of all the problems like corruption that’s happening in the government itself, it leads to the disadvantages in the country, such as poverty, recession, low level of education to the less number of schools build and less health care. In conclusion, government’s intervention is still important for the country and gives benefit, but not always.
Regina Tanugrah 8B
Resources :
http://www.ehow.com/info_8646461_advantages-disadvantages-government-intervention.html
https://www.boundless.com/economics/principles-of-economics/interaction-of-individuals-firms-and-societies/government-intervention-may-fix-inefficient-markets/
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Government influence on the market can increase the productivity and efficiency in the country. This productivity will usually be the one that going to be exported to outside of the country. For example , if in Indonesia , it will be like coffee , vegetables , rice , etc. Export is important because if import is bigger than export , it will create a negative BoP. That’s why government will give some influences to the market so that the productivity of the country it self can increasing . Each country will have a different productivity.
ReplyDeleteSo , government influence on the market can increase the productivity and efficiency in the country .I agree with this statement . Government will have a very important role in a country and they will always make some program so that the country’s productivity and efficiency can increase . Some influences that the government can do to increase the productivity of the country are First , Give some free education ( schools , university ) so that all people can have a knowledge and skills. By doing this every people in the country will have a standard skills , which will be very useful. People that have a knowledge will usually can produce more goods . They will have more skills in doing that particular job . Like example , in Indonesia , usually product that will be produced by the country is palm oil . Its said that The major trading centers of CPO in the World are Malaysia and Indonesia in Asia and Rotterdam in Europe. So , it means , almost 50% of productivity in Indonesia is palm oil . So , government can give some training or education how to plant the trees and some basic knowledge about it. This can increase the productivity of the country. Another example will be like in garment industries . Indonesia is also big in garment. Many people in Indonesia are having the garment industries like for example Batik . So , gov’t can give some free education about knitting in order to increase the productivity. Second is that the government can give some subsidy . This will include gasoline, etc. Subsidy can be given by the government in order to increase the productivity. The example will be like in Indonesia , many people is working as a fisherman . This fish will also can be exported . But usually the fisherman in Indonesia is poor , so they only can catch the fish near by the shore . This will not have a lot of productivity . So the government just give some free boat , so that they can travel farther and have more productivity for the country. Third , the government can build new infrastructure . This will include roads , railway , etc. By doing this , productivity can be increasing because there will be easier access in transporting . Like example in mining . Usually for mining they will go to a far place where there still no roads . This can make them having more time in transporting the goods. This will of course effect the productivity . Fourth , the government can help to reduce the interest rate. Big company will usually need to buy a lot of basic materials. But sometimes they cant buy a lot of them because they afraid , that the interest rates can charged the prices and they cant pay it . So , government can help to reduce the interest rate and they can buy a lot of basic materials to have a high productivity.
But , sometimes government influence on the market can also decrease the productivity and efficiency . It also can bring some negative effect. This will be like First , sometimes government can do corruption . Government will usually collecting taxes . This taxes will usually be used for them to support their program . But sometimes , they are not efficient . The money sometimes is not used for supporting their program , but they used it for their own good. Like for example from the government , they give 10 million for supporting their program . But at the end , the total money that is used for that program is only 1 million. So , it will reduce the efficiency . Second , Government will always want their country have a high productivity . But the problem is ,How if the good that they are producing is dangerous . Like example in Indonesia . Indonesia is also rich in tobacco. This tobacco is being wanted in all over the world because now a days , many people are smoking . So , government will of course support this , so that the country can have a high productivity. Third , Some infrastructure that’s being built by the government to increase the productivity is dangerous. Like example the roads. Sometimes the roads is not constructed really well , and it make the roads can broke and fall. This will be very dangerous.
ReplyDeleteSo, in conclusion, government influence on a market will of course increase the productivity and efficiency . But sometimes , it will be dangerous and bring some negative impact . Government will always do something in order to increase the productivity of their country . This will help them in exports .
References : - notebook
- Textbook
- http://www.unf.edu/~traynham/ch07lecture.pdf
- http://www.investopedia.com/articles/economics/11/how-governments-influence-markets.asp
- http://www.agricorner.com/top-ten-palm-oil-exporters-2012/
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kezia -8b
The government has three main roles in the economy the first being the consumer the second being the regulator the third being the producer. Filling the first role which is the consumer, the government will purchase products in order to check the usefulness of that certain product. Depending on how useful that product might be, the price may be changed by the government. This is where the second role of the government comes in, the government will add extra taxes or give subsidies depending on the usefulness of that product. An example of it would be in the case of car fuel, as it is subsidized by the government, they will add taxes on much less useful products though. The third is being the producer, as the government do in fact provide services, like national banks or the power from power companies.
ReplyDeleteThe government has provided good roles in the economy from time to time. First of all the fact that the government does great things on their jobs, their work has done great things to the market. One of which is that the government has implemented the taxing and subsidizing methods greatly, that has improved the regulation of purchasing products in the market. As it is stated the taxing and subsidizing methods that the government has implemented, works to reduce or increase the demand of a certain product. Better consumer goods has a lower price thanks to subsidies and vice versa for taxes. The other great thing that the government has provided is the water and power supply, as to fill their roles of producer they need to sell something to the country. They provide power and water at reachable prices which is a good thing. As more people in the country can purchase it for their own use. They also test products that are in the market, in order to fill their roles in the market as a consumer. The testing helps fill their other role which is being the regulator in the market.
The government do in fact do their jobs poorly from time to time, some problems they made are even the ones that they should prevent as the government. The main one would be the problems of corruption, corruption has big negative effects on the market and the country that experiences it. It could be one of the biggest factors a country does not develop. This should be taken in priority for the government as corruption is a big problem that is made by the government.
Sometimes the problem in the country can be caused by the government doing their roles poorly. In one case in the United States of America is that the government subsidized the wrong type of food. In USA’s case that is things like corn, the government subsidized food like it. Which is considered as the reason for America’s large percentage of obesity when compared to other countries. So doing their jobs poorly the government can cause problems in the country.
At times lack of regulation in the country’s market can lead to a negative effect in the market. And lack of regulation is caused by the government. For example if the government doesn’t increase the tax for harmful products it causes an increase in demand which is bad. Another example is when useful and essential products do not get any sort of decrease in price by subsidies.
At times the government can be a bad thing to the country and the market, but other times the government did their job greatly. So i am satisfied with their roles to a degree, the barrier line would be if the government did their job correctly.
So to conclude what i have just discussed, the government could increase the productivity and effieciency of the market and country but only if they do their roles correctly.
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references used
http://www.policymic.com/articles/3051/how-the-government-has-caused-america-s-obesity-problem
Government’s role in a country is very important to a country’s economy/market in many different ways. First government can act as an employer, then government can act as a producer, and also government can act as a consumer. And also it can act as regulating authorities. Government’s act can influence a lot the country, therefore here are some factors how the government can help by dong its multifunctional roles.
ReplyDeleteGoods such as water, electricity, roads, mining, educations, seaports, and many more are all funded by the government. This will make government as a producer in the country. These are all basic goods to which all people living in the country will need them whether they are rich or poor. Because of this, there is a benefit for the people for the fact that the government is a monopoly over the basic goods. Imagine if a water supply industry in the country is a perfect competition market, the industry will try to charge higher prices and so the poor couldn’t obtain its needs. Government will also try to subsidize the price of a basic good so the poor can also enjoy its benefit. An example of a government acting as a producer is here in Indonesia. Electricity as PLN, water management as PAM, national schools as Sekolah Negeri, and so on.
One of the main economic problems in a country is about the unemployment of workers. Unemployment can cause a bad reputation to the country and it also can mess up the economy of one’s country. And because of that, government must take actions to control this situation. Government can help by providing work fields to the people. The government is separated into 3 parts, which are the central government, provisial government, and the local level (district). Jobs in the government such as tax officials, nation banks (in Indonesia, known as BI, Bank Indonesia), Arm forces (such as navy, marines, air forces) government department, and also airport authorities may need labor forces in which the people can employ themselves in participating and help to reduce the number of unemployment in the country. The government also gives advantage to the ones who cork in the government, which is a job security. This is very beneficial to the employees in which they will assured to own insurance, pension, special treatments, and many more. Second, a provincial government. Government will help the country by funding several needs to the people who are in need such as in factors of education, health care, and catastrophe disasters such as fire or floods. Government can help funding books, stationaries, clothes, administration funds for the children who wants to pursue their education. They can also help funding medical bills, prescribed medicines to the people who are sick and didn’t have the ability to pay the costs. In terms of natural disasters. Government can take action by sending supports such as food, shelter (tents) clothing, medicines and medical needs, and also weaponry if necessary. An example of a disaster is the incidence of the volcanic eruption by the gunung merapi in Yogyakarta. The government sends medical assistance, army, food, clothing, and shelter to the victims of the disaster.
Third, government can help in local levels or district/provinces. Usually they will help villages for those who need cleaning or lighting so the villagers can do its daily activities.
A government also can be a consumer to the country by helping small firms and farmers purchasing their goods or help them fund their businesses. Sometimes government will try to buy bad products from suppliers that have failed to attract the customers. By doing this the government can regulate the prices but stabilizing the prices in the market. To stop price falling due to surplus, government will try to purchase the good that hasn’t been purchased by the customers. So even though the suppliers will make bad goods, the government will still purchase the goods.
ReplyDeleteBy regulating authorities, this means that government will help to set some regulations and control over several cases, such as pollution controls, health department, and also monopolies and restrictive trade. In pollution control, government will try to minimize the air pollution by banning too many factories being site in the outskirts of cities, which can damage the air into the city, government also can fine those companies whom dunk their water waste and dirt into the river without maintaining proper care which can cause water pollution. In the health department, the government will try to conduct several tests on medication and medical techniques to ensure that the work they are doing is safe. Besides the hospitals, government will have stronger policies on the safety of food sold in upper class places to the food snacks in the streets. They will help the people to ensure the cleanliness of the kitchen and also the if the food is nutritious or contains poisonous chemicals. An example of this is in Singapore. You may have seen most of the places you go will have an “A” or “B” sign posted in the shops’ walls. This is an indicator of the grades they have achieved from the government about their overall business; we also can say how well served and clean the product they sold is. The Singapore government has a very strong rules and regulations about their diet and environment. Another example you may have known is that most of the places in Singapore doesn’t allow people to sell or bring durians. This was acknowledge as a visual and scent pollutant, because durians can be really smelly and disturbing to other people. The government also has control over the monopoly business in the country. The purpose of this is so that the monopoly wouldn’t set their prices too high so that customers wouldn’t be able to purchase the goods. Government will limit the prices.
So in conclusion to what I am explaining, the government certainly helps the country a lot in several cases in the market. We indeed need their help. The reasons above have proven that government has increases productivity and efficiency of one’s country.
References: Notebook
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By Celine Kusnadi 8B
Government plays important role in the development of the country. Through various measures it directly or indirectly regulates and controls the market activities. Government may help to prevent market to be mis-organized which may leads the country to have more economics problems.Government influence may be formed as giving free education services, fuel and oil subsidies, restrict the allowance for mining natural resources, increase minimum wages, and many other else.
ReplyDeleteBy having supports from government such as having free education, poor children that cannot go to school, now they can have and enjoy free education given by government so that the unskilled people or uneducated children (future workers) in the country could be decreased. Another benefit could be earned is the number of unemployment in a country could be decreased when government adds national investments or attracting investors or by reducing national population growth which may create new workplace. Beside that, poverty in a country could be decreased when government increase the minimum salary or wages. People in the country could be living more satisfied when government supports the environment conservation such as pollution control, go green, build more garden, etc., when government provide more free public services, improve national security or when government gives special services (very cheap or completely free) to poor population. People personal expenses could decrease when government subsidies the oil and fuel and other basic goods. So from above summary, government influence would give people much benefits.
The very and quite simple example is in Indonesia. Indonesian government firstly gave subsidies on national school which leads addition in number of children started went to school. However, the number of differences was not too high, so that government gave complete subsidies on certain national schools (not all) which means there will be no any school fee cost charged. Because of that supports, poor children in Indonesia could go to school and the uneducated children in Indonesia became much lesser. And also after that support was given, world education competition cup (olympiade tournament) are more won by Indonesian which because not only private sector schools’ students won the competition, but national schools’ student also took role in winning the cup. Not only giving subsidies on school, government also make scholarships for those selected students from national schools to be able to have their courses on Indonesian good universities (ITB, UI, etc.) which makes Indonesia to be ranked forward in technology development.
DKI Jakarta government nowadays are focusing about giving people very cheap public transportation services. For now, transjakarta bus were added much so that people could use it for going to many places in a very cheap prices of services. Aside in adding cheap-price bus supply, DKI government are developing monorail train and underground train which has the same purpose as in adding transjakarta bus supply. If these undergoes well, setting policy in muchly increasing parking fees and government adds more security, which includes lesser number of pick-pocketers, stealer, etc., the number of people who use private cars will be lessen much and they will move to use the public transportation provided and in transportation method Jakarta will be like Japan, which has very less or even no pollution, cool and fresh air, many pedestrians which decrease in number of people who have heart problems and many other benefits.
But, there are also some disadvantages when government plays role in the country’s development. Government could build free public goods but government in most country unable to maintain their goods. Aside from that, sometimes government mis-organized the trading for example Indonesia. They sell much on agricultural products by exporting to another country, however Indonesia bought or import much on electronics products so that the expenses of Indonesia will be much bigger that its income. The economic prices of a country mostly are inflation which means the currency of the country involves down-value which increase each product price in the country (ex: Indonesia). Another example is when Indonesian government subsidies the oil and fuel prices, not only poor population consume the subsidised product, but rich population also consume the subsidised product. Because of national income or national economic is not very well, the minimum wages will stay low. Low income or no income (unemployment) will affect Indonesian population to corrupt, and have increase in criminality,
ReplyDeleteSo, in order to create good economic or country development, government should have a teamwork with private sector organization which had skills to be able to organize better.
References: Cornell Notebook
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Government plays important role in the development of the country. Through various measures it directly or indirectly regulates the market activities. In order, to achieve this goal government use macro economy policies, they are fiscal policy and monetary policy. Fiscal policy is a policy that influences economy through government expenditure and revenue. Monetary policy is a policy that influences economy through changes in the money supply and/or interest rate in an economy to influence the level of aggregate demand and economic activity.
ReplyDeleteFiscal policy is a tool of government economic policy. Points in favour for fiscal policy are;
• Education; this would also have the benefit of increasing the skills / qualifications of the labour force.
• Health; this would also have the benefit of increasing the productivity of the labour force.
• Transport infrastructure
• Benefits
• Buying up / taking over failing private sector firms
• Government support for investment expenditure by firms on new plant and machinery.
Points against for fiscal policy are;
• Fiscal policy is cumbersome to use
If an economy is overheating, deep cuts in public expenditure or increases in taxes that are too severe may result in rising unemployment instead as the level of aggregate demand tumbles.
• Increases In public expenditure crowds out private spending
To finance an increase in public spending and/or a cut in taxation a government may need to borrow the extra money it needs from the private sector. The more money the private sector lends to a government the less it has available to spend itself. This is called crowding out.
• Increasing taxes on incomes and profits can reduce incentives to work and enterprise.
If taxes are too high, people and firms may reduce their work effort. This will reduce labour productivity, total output and profits. As productivity falls the cost of production in many firms will increase and they will be less able to compete on product price and quality against more efficient producers overseas. As a result, demand for their goods and services may fall and unemployment may rise.
• An expansionary fiscal policy creates expectations of inflation
Consumers and producers in an economy may come to expect a future rise in inflation following an expansionary fiscal policy, especially if attempts by their government in the past to boost demand and economic activity have caused the economy to overheat.
Points in favour for monetary policy;
ReplyDeleteThe two goals of monetary policy are to promote maximum sustainable levels of economic output and foster a stable price system. Stable prices mean keeping inflation low, and the Federal Reserve Back of San Francisco concedes that low inflation is all that monetary policy can achieve in the long run. Inflation reduces the purchasing power of money, harming economic growth. In contrast, stable prices enable households and businesses to make financial decisions without worrying about sudden, unexpected price increases.
Points against for monetary policy;
The Federal Reserve and other central bank can use monetary policy to achieve low inflation in the long run and affect economic output and employment in the short run. The Federal Reserve Bank of San Francisco reports that these goals sometimes conflict. Reducing interest rates to expand the money supply and stem rising unemployment rates during a recession, for example, could spark future inflation if monetary policy remains expansionary for too long. The best monetary policy seeks to strike a balance between these short –and long-term goals.
However, not all economist accept there will always be trade-offs between government objectives. That is, they see no reason why low taxes, low rates of unemployment and high economic growth can only be achieved at the expense of low price inflation, a favourable international trade balance and reduced poverty in society. Government policies, they argue, can and should be designed to achieve all these aims at the same time by combining sound fiscal management of public spending and taxes with sensible supply-side policies.
Reference :
• Economics book
• http://www.ehow.com/info_8239910_advantages-disadvantages-monetary-policy.html?ref=Track2&utm_source=ask
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In a country, productivity and efficiency have a great influence on the economic growth and stability. This will in the end directly or indirectly affecting the economic condition of a country as well as the welfare of its people. Productivity has a meaning of the ratio between the inputs and outputs in a production or economic. When a country’s productivity increases, this will bring a better welfare to the people as their real income will increase and will give them a greater chance to fulfill their needs and wants in a better way. Hence, productivity is the key source to an economic growth. Government decisions has a great effect on the economy as the decisions that they have made will mostly become regulations. They are actually the decision maker, the producer and might also be the consumer.
ReplyDeleteTypes of economic systems are also decided by the government. This is why there are some monopoly sectors, oligopoly sectors and perfect market sectors. There are also some regulations such as the amount of goods to be exported or imported annually, taxes rates, regional employee’s pay, subsidy and many more. All these will therefore influence how the economy runs in that particular country and finally bring a certain result to it. In Indonesia also there are some government’s measures that are affecting the productivity of this country. The most obvious measure is the national budgets that include the amount of subsidy for the people as well as the budget for infrastructures and facilities development. For an instance, these recent years government has increase the budgets for infrastructures such as road building and maintenance as well as subsidized housing or flats. This will automatically improve the standard of living for the people especially those who has low income as they will get the chance to live in a more proper houses. As for roads, this will definitely improve the access for trucks and cars to transport goods and services to even more remote areas in the country and also transporting raw material from the source to the factories. Thus, since the distribution can be done in a better way, this will certainly improve the productivity of the goods and services which will directly influence the economic growth and therefore the productivity and efficiency of the country. In this area I think government has done a better work than the past times as we can have better goods and services.
Other thing will be the government regulations in fiscals’ area such as the tax’s rates, the worker’s pay standard as well as subsidies. Subsidies might be a good way to help the people obtain needs however it will also affect the financial condition of the nation. For an example, when imported goods tax rates is high, the number of imported goods will automatically decrease as it affects the price of the imported goods in the market and as the prices increase, the demand will decrease. Sometimes even government takes a decision to reduce or even stop the import of certain good. This might be a good measure to take to increase the nation’s productivity as people will find local goods as replacements and hence, it will increase the production and consuming rates of the local goods in the country. However, this measure might be a disaster if government does not make sure that the domestic production can fulfill the demand. This happened last year as the import of soy bean was reduced and was even stopped for sometimes. The price of local soy beans was actually always higher than the imported ones and the production of the good itself was not enough to meet the demand of it. Hence, this result to some extreme condition where the producers of Tempe and Tahu (tofu) were forced to shut their production as the cost for the raw materials was too high and they think they cannot make profit with such condition. Even though there were also some that are willing to take the risk to obtain the material, they were also were not able to get them due to the shortage of the goods. These obviously affecting the economic situation as people are losing their income aside from affecting the nation’s nutrition as these tempe and tahu are one of the protein’s source of the local people. Finally, in the end another measure for this case was taken which is government would subsidize certain price of the soybeans.
ReplyDeleteFrom these examples, I think government should take decisions which will affect the productivity and economic growth of the nations wisely as in the economic system every inch of decision has a great impact for the people. Moreover, they have to remember that the economic condition of a country is also depending on the welfare as well as the economic ability of its people.
References:
http://www.matrade.gov.my/en/about-matrade/media/market-alerts/market-alerts-2013/2769-indonesia-to-boosts-infrastructure-investment-in-2013-budget-march-2013
http://en.wikipedia.org/wiki/Productivity
http://www.reuters.com/article/2013/08/27/indonesia-soybean-duty-idUSL4N0GS0VK20130827
http://www.thejakartaglobe.com/business/indonesia-to-subsidize-local-soybean-production/
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vincent cia 8B
Government has a very important role in the development of a country’s economy. Government help develops the living condition of the people of the country. Government can affect the country’s economy through various measures that can be taken by each role of the government. These measures can directly or indirectly affect the country’s economy. These actions of the government can both benefit or damage a country’s economy depending on how the government use it. The government is the only part of a country that can help fix the problems of a country.
ReplyDeleteMainly , a government of a country has 4 basic roles which are:
1.As an employer
The government employs workers to work for the government such as in militaries, public corporation, national banks, government departments and as tax officials in every part of the country. People employed by the government provide their service to the country and to the government for the benefit of the country.
2.As a producer
The government produces goods and services that is very important to people such as basic needs, water, electricity, education. As a producer they sell these important goods and services cheaper than private companies so that people can live.
3.As a consumer
Governments buy goods from other parties aside from the government so that those parties gets money and to stabilize the supply and demand level of goods and services. Government also buys goods so that they can store it for important purposes in the future
4.As a regulator
Governments can decrease or increase the tax of a country , they can apply policies to private companies to improve the environment and the economy. They can take measures that makes them act as a regulator.
The actions done by government in every role of a government can affect the economy of a country. The actions of the government can benefit the country.
As an employer, the government employs people to work in government departments and corporation. This will hence decrease the level of unemployment and fix the economy. Employing workers also help increase the standard of living of a country as people get more money than they usually do. For example in Indonesia , the government build a water company that provides water for all of the Indonesian people. This company needs workers and government can employ unemployed workers. As a producer, the government can produce goods needed by the people living in a country and the government can sell it cheaper than any other company so that people can easily obtain these needs. The government also produces goods that are needed by the people that no other companies would like to produce because it requires a lot of capital to produce. Hence the government can give people their needs. As a consumer, the government buys goods from parties outside of the government. The government do this to stabilize the price of goods. If there is too much supply of goods , the price of goods will fall and hence the supplier will not get any profit.
By buying some of the goods , government can reduce the supply and hence increase the price of goods. The government also buys goods to keep them and use it for a better purpose in any emergency situations in the future. As a regulator, government can apply policies to companies that is damaging the economy or the environment. For example, if a company is producing too much pollution into the air , the government can apply policies which force the company to improve their production method so that it doesn’t harm the environment greatly. Government can also increase taxes on goods that harm people, so that people won’t buy that good. The government also can create laws to prevent a person from doing a crime that will have a great effect on the economy.
ReplyDeleteThese positive results can be obtain depending on the decision of the government. If the government made a mistake, this can damage the environment and the economy of the country. For example in Indonesia , the government doesn’t raise the taxes on cigarettes which result in the increase of pollution, people waste their money on pointless goods and hence will have further effects that affects the environment and the economy of Indonesia. Another example in Indonesia is that the government doesn’t give high penalties to those who corrupts the people’s money. Corruption can have a great negative effect on the country’s economy and yet the government only give small scale penalties.
In conclusion, the government plays a very important role in a country but if the governments fail to make the right decision in his role the economy of a country may fail.
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References : Cornell notebook
Executive summary Governments of OECD countries are under pressure to improve public sector performance and at the same time contain expenditure growth. While factors such as ageing populations and increasing health care and pension costs add to budgetary pressures, citizens are demanding that governments be made more accountable for what they achieve with taxpayers’ money. This article briefly reviews key institutional drivers that may contribute to improve public sector efficiency, and focuses on one of them in more detail
ReplyDeletePerformance information and its role and use in the budget process. There is no blueprint for enhancing public sector efficiency. OECD countries have thus adopted diverse approaches to reforming key institutional arrangements, which include: increasing devolution and decentralisation; strengthening competitive pressures; transforming workforce structure, size, and HRM arrangements; changing budget practices and procedures; and introducing results-oriented approaches to budgeting and management. Although the majority of OECD countries have engaged in some institutional reforms, the empirical evidence of their impact on efficiency is so far limited due to: the lack of resources to conduct evaluations; the lack of pre-reform measures of performance; the complexities in measuring efficiency1 in the public sector; and the problem of isolating the effects of specific institutional reforms on efficiency from other external influences. Empirical evidence nevertheless suggests that the following three institutional factors may improve public sector performance: ● Decentralisation of political power and spending responsibility to sub- national governments. ● Appropriate human resource management practices. ● In the education and health sectors, there is evidence that increasing the scale of operations may improve efficiency. Increasing the use of performance information in budget processes is an important initiative that is widespread across OECD countries. It is part of an ongoing process that seeks to move the focus of decision making in budgeting away from inputs (how much money can I get?) towards measurable results (what can I achieve with this money?).
OECD countries have reported a number of benefits from the use of performance information (PI): ● It generates a sharper focus on results within the government. ● It provides more and better information on government goals and priorities, and on how different programmes contribute to achieve these goals. ● It encourages a greater emphasis on planning and acts as a signalling device that provides key actors with details on what is working and what is not. ● It improves transparency by providing more and better information to parliaments and to the public, and has the potential to improve public management and efficiency. OECD countries, however, continue to face a number of challenges with the use of PI in the budget process, including how to improve the measurement of activities, the quality of information, and getting politicians to use it in decision making.
Despite these challenges, countries are evolving their approaches, not discarding them. The OECD has developed general guidelines for countries as they adopt and evolve initiatives to improve the use of PI in budgeting processes. Some important factors to consider in this respect are: ● There is no one model of performance budgeting; countries need to adapt their approach to the relevant political and institutional context. ● A common whole-of-government planning and reporting framework is important. ● PI should be integrated into the budget process. ● Designing government-wide systems that automatically link performance results to resource allocation should be avoided, because they may distort incentives and because it is difficult to design systems that take account of the underlying causes of poor performance. ● Independent assessments of performance information should be carried out. ● The support of political and administrative leaders is vital for implementation. ● The staff and resource capacity of the ministry of finance (MOF) and spending ministries is critical. ● Reform approaches need to be adapted to evolving circumstances. ● It is important to develop incentives to motivate civil servants and politicians to change their behaviour. As citizens continue to demand better value for money for their tax payments, there will be a continuing need for PI. Although the speed and methods of reforms will vary across countries, it is vital that countries recognise that a long-term approach is necessary, that implementing PI in budgeting is clearly a learning-by-doing process, and that the journey can be as important as the destination.
ReplyDeleteAs the conclusion, the paucity of data often makes it difficult to benchmark countries, but recent attempts at doing so in the education sector –where the lack of output data is a less severe constraint – reveal that efficiency shortfalls can be large. Also, the variety of OECD country approaches to managing public spending programmes provides useful insights about possible strategies forimproving value for money
Reference : Notebook
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Richard Sanders
A government is the system implemented in a state or area. They have the control of it at a given time. In the country, there will always be a ruling government; they can help the development of the country as they can act as the employer, producer, consumer and also the regulating authority.
ReplyDeleteA government in a country, with its higher access towards capital, can help providing non-financial factors, like facilities, institutions, information, etc., they are important for the market to operate efficiently. The help of the government is important especially for those in the early stages, coordination between the market enterprises and the government is needed, the non-financial factors could be improved, machine can be bought and institution can be bought in. But if the government fails to do so, the market of the country will. As an employer, the government can help reduce unemployment, they open more job fields, hiring those who are previously unemployed. The workers working for the government is already secured, they are provide job security. But also working with the government, the workers could just be exploited; they are given less then what they are supposed to be. As the consumer, the government can use buffer stock for agriculture reasons, they help the market for the products produced by the farmers keep going, As during the harvesting seasons, there would be surpluses of the products, with this the government buys them in order to keep the prices high and later on sell the products when supplies are lower.
As the regulating authorities within the country, the government can control the rules and regulations. In order to keep the safety and health of the citizens, rules about pollution can be given (Restrictions). Rules can also be set for maintaining the market of the country, there could be rules implemented, for example, if you want to establish a new firm in the country, there are rules to be followed. As also that they can possible control monopolies within the country, they can, either, remove the monopolizing firm or be the firm instead. Taxes and subsides can also be given. The taxes to those harmful products and subsides to the basic necessities.
To conclude on what has been mentioned above, the satisfaction towards the involvement of the government towards the market for increase in productivity and efficiency is quite high, the government helps in maintaining them and keep the country moving.
Reference:
http://en.wikipedia.org/wiki/Government
http://triplecrisis.com/markets-and-governments-in-developing-countries/
Plagiarism Check: 90%
Grace-8B
Government play the role in developed countries like, Japan. Japan is one of the developed countries and the third largest of economy in the world also It has three level of government national, prefectural and municipal. Their National Government is controlled by the Prime Minister of Japan. The prefectural is divided in 47 administrative divisions, two urban prefectures, Kyoto and Osaka, one metropolitan district such as Tokyo and one district, Hokkaido. The Government Effectiveness and Control Corruption is Top 30
ReplyDeleteThe Government acts most in employee, provisial, producer and unitary state. As an employee, they charge the consumption taxes 5% but the corporate taxes are high. As a Provisial government they provide services like roads and transportation, Shikansen to people for travel work. As a Producer, they subsidies rice farm to support the price of grain and guarantee farmers stable income. As an unitary state they the one who control overall in education and police force. Also when 2011 the biggest Tsunami and nuclear disaster, the government perform superior than the Haiti’s earthquake but in nuclear they use shorcomings in leadership and governance.
Points against that Japan also have some failure in their government role in economy and militarism. In the economy, their market failure in energy efficiency in Tokyo due to the weaknesses in their economy failure of the democratic government as it's too powerless and unable to control/command and the worst of them all that their economy falls down because of world war 2. In the militarism, they have a failure to attempt to assassinate prime minister and secure control in “Incident February 26”.
The Conclusion is The Government in Japan really take control/ role in it as they provide what the people’s need, Subsidies rice farm and Now the condition of Japan economy is in road to recovery/ stop worsening / growing faster and becoming the third largest of the world
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Source : Notebook and Wikipedia
By : Tracy 8B
The government plays a crucial role in the economy of a country. There are plenty of roles the government play that includes the government as an employee, a producer, a consumer and also as a regulator. Aside from those roles government are also able to intervene into the economy to solve the economic problems being faced by the country. The government has various goals in doing the intervention. The first would be to make the marginal cost for consumption or production equal to the marginal benefit for society for either consumption or production, this is also known as social efficiency. Another objective they are willing to achieve a more equitable distribution of income and wealth. Lastly they would like to maintain a good performance in the economy whilst simultaneously also correcting market failures.
ReplyDeleteGovernment intervention is when the government decides to take action and intervene in the correcting of market failures. There are various problems a country will encounter, whether if it’s corruption, an unemployment, or even poverty, the government has the authority and the responsibility to fix these problems. The government also has various ways to solve these issues, in some cases they would increase the minimum wage so that the poor could receive a higher income, also increase the social welfare expenditure thus it will end the poverty in the country. As for the unemployment, it is because the people in that particular country don’t have any skill hence they aren’t being hired. So the government should give free education to the poorer people. They should also put education as their number 1 priority. A good example of this would be Korea. Korea is now very strict with the education that it receives. Government set up a regulation that anyone who works will be allowed to arrive at their office an hour later due to the exams that the students are facing. The frequency of busses and trains will be increased from 6am up to 10am, taxis and police cars will give free rides to the students so that they will make it on time to take their examination. Other countries should also follow Korea in the way that they uphold and prioritize the importance of education in their country. Lastly, due to the issue of corruption that has been happening in Indonesia for quite some time, the government should set new and even stricter rules. Better yet we should just change the government since all of them are corrupt, not just one of the officials but the whole structure is, that’s why they never get caught because the whole entire system is corrupting the country’s money together. In this case you should bring in someone clean into the government. In Indonesia we’re trying to elect Jokowi as the new governor since he has no record of corrupting any of the country’s money, so we think that by electing him we can solve the corruption problem that we’ve been facing.
The benefits of having the government intervene in the economy of the country would be that they could stabilize the economy and ensure fair distribution of yields of development. It can also ensure that the developmental efforts will not result in certain harmful social costs such as pollution and monopoly., thus it’ll make the country’s market economy making it more efficient and more productive. However, there are also disadvantages due to the intervention of governments, it may lead to the loss of competition between firms and hence a decrease in the development of the economy in the market.
ReplyDeleteThe government may give out rules and regulations such as the monetary policy and the fiscal policy. Monetary policy in which may be increased or decreased by the government due to the current economic situation. So to conclude my essay, I am satisfied by the intervention of the government to the economic market in the country, which increases the development of the particular country and also increases the productivity and efficiency in the country. Though there is also a downside to it in which the government may also slow down the development or in the case where they aren’t able to solve the problem. Thus to conclude it there are both benefits and disadvantages to the government intervention.
Charlene 8B
References
http://economics.about.com/od/howtheuseconomyworks/a/government.htm
http://www.tutor2u.net/blog/index.php/economics/tagged/tag/demand-side+policies/
http://www.investopedia.com/terms/s/supply-sidetheory.asp
Notebook
Economics Book
100% unique content
Government plays important role in the development of the country. Through various measures it directly or indirectly regulates the market activities. online gaming .
ReplyDelete