Grade 8A 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
There are still many problems in Indonesia in present days. Some problems that government hasn’t finished yet such as corruption, pollution, inflation, traffic congestion, unemployment, low quality of public service, poverty, scarcity of resources, and many more. These problems caused may be caused by overpopulation, unemployment, lack of governance, and education. The consequences includes slow development, poverty, crime, undeveloped infrastructure, and less skilled worker. In an macroeconomic also government acts as a employer, producer, consumer, and also regulator. As an employer government hire people to work in public sector such as in custom department, defense force, coastguard, justice department, and also search and rescue department. As a worker in public sector it offers many benefit such as job security, pension contribution, and many others. As a producer public firms ( corporation ) such as state-owned enterprise, PSE, PSU’s develop infrastructure and produce merit goods such as education and healthcare which the expected benefit is less than the real benefit for consumers. Merit goods are also under estimated by people so there’s only a little demand for merit goods such as education although it’s important. Government also acts as a consumer to control the prices of goods. Government also acts as regulator to remove inefficiencies, check quality, price , and restrict monopoly in market competition.
ReplyDeleteIn some reason I satisfied that government influences on the market increase productivity and efficiency in the country. First government build infrastructure such as roads and railroad to make transportation easier and attract both local and foreign investors to invest in local business and increase their capital which might increase productivity and efficiency of the local business and export of a country. For example Indonesia government started to build trans-java expressway to make transportation easier, reduce traffic and reduce transport cost and increase efficiency. Second by a campaign of Indonesia government and other institution to reduce pollution, installing catalytic converter in car exhaust, and fining the factory that produce too much pollution. Pollution in Indonesia is declining from time to time which bring down cost of cleaning pollution from natural and human environment to increase efficiency.
In some reason also I’m not satisfied with government influences on the market increase productivity and efficiency because some people inside of government institution also do corruption and nepotism which is unprofitable for many people and only benefited some parties. It also decrease productivity and efficiency of a country as many official sent to trials which is time wasting for not working in normal working hours and lastly they sent to jail so the upper government institution have to replace the last one which is a long process which might decrease productivity and not efficient. In 2013 Indonesia corruption perception index rank was only 114 out of 177 countries. That can be categorized as high corruption rate. Government also giving less fund on education sector rather than others sector which only enable some financially able students to go to school instead of the poor ones. Which may cause in unproductive, less efficient, and less quality workforce in future and might result in unemployment because of less skilled and ability or failed to compete with another candidates to fill the job position.
The conclusion is that I’m not satisfied with government influences on the market to increase productivity and efficiency in the country. Government still have to maximize their work to achieve an significant economic development and especially build a better infrastructure and reduce corruption.
Unique content : 100%
References :
http://en.wikipedia.org/wiki/Trans-Java_toll_road
http://www.irinnews.org/pdf/in-depth/tomorrowscrisestoday-chapter7.pdf
Government influence a lot in a country because without them it will be hard to purchase goods and services with lower cost and government is the can determind either the price was too high or not, because if the goods was at a very high cost the government can lowered the cost down so all of the people can buy the products and not only the rich people that can buy it. But in Indonesia the government still needs improvement because there are a lot of problems in Jakarta that still need to be solved like traffic, corruption, pollution, and many others. So the government in Indonesia will need improvement in their service that is provided to the people in the country and the better one is only the toll road in Indonesia beacuse it helps a lot for the people that use the toll road because there is no traffic congestion but there will if there was an accident happen in an area. It will be good if the government will increase their quality of service so people that use it will get satisfied and they reduce the change for corruption in the country so the money can be used properly by the government to increase the country service quality so it will attract more tourist to come because Indonesia have a really cool and amazing nature that sure will attart a lot of people if the government give more treatment and care to it. But government also do corruption where they need to stop them because it only makes the country fails and couldn’t improve and the government need to use the money that we payed, for something that will help the people and there is still a lot of poor people in the country which needs help from the government, so they could live with a healthy life and good environment. So the government in each country must done their work properly to gain satisfaction from consumers and their country will have a good name in other country and not to be known as a corrupt country.
ReplyDeleteThe conclusion is I does agree that the government is influencing the market but the Indonesian government will need more improvement so they could bring the country forward and not staying at the same spot for years but to improve the people also need to cooperate with the government so they could stop the main problems in each countrys.
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Robin 8a
Government is group of people on a country who managed the system by which a state or community is governed. Generally there are several function of government that is to maintain authorities, administration, and many others. In business, the role of government is to give permission, to enforce contract, to protect the consumer to ensure safeties is increase, protect the employee, to protect environment so it is not damaged, to collect taxes for building infrastructure and buildings, and to protect investor. The form of government influences in business such as monetary policy, competition policy, exchange rate policy, fiscal, and privatization.
ReplyDeleteGovernment’s monetary policy. It is an action of a bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates. Monetary policy is aim to increase interest rate, or changing the amount of money banks need to keep in the vault (bank reserves). Competition policy. It’s aim is to promote more competition and make the market in a country better. Exchange rate policy. The exchange rate of an economy affects aggregate demand through its effect on export and import prices, and policy makers may exploit this connection. Fiscal. The government uses tax as the tools in practicing fiscal policy. Tax can be used for subsidies, public expenditure, public goods, building infrastructure and renewing old building by paying it to the government. The example of tax in Indonesia is PPH, PPN, PBB, PPnBM, and many others.
For some reasons and some researches, I’m quite satisfied. Because without government, we couldn’t enjoy the beautiful building and infrastructure. Actually government has role on increasing market productivity and efficiency in the country. The benefit of government for environment is to protect "open access resources" such as water and air. The government can protect environment by giving laws and policies to the firm so their production didn’t damage the environment. For example in Indonesia, health department of government did not allow food producers to mix their product with dangerous chemical substance. The other benefit for government is market intervention. As government intervenes, it can decrease the amount incorruption in a country. It will help people fewer losing their jobs. The infrastructure which is being built by the government also help firms to do their operational activity, for example a company can use toll to deliver their product faster.
ReplyDeleteFor some reasons and some researches and sightseeing building, I briefly said that I’m not satisfied. They can’t apply their rules and regulation well and smartly due to practicing corruption, collusion, nepotism. The cost of this intervention will ultimately be paid by the people, who will for the most part not directly gain from it, or will only temporarily gain from it. Example, we paid for tax expensively, but they instead of using it for repairing buildings and infrastructure, they used it for themselves. It is called corruption. If don’t do corruption, we may enjoy the benefit of paying the taxes to government even though, it is expensive. In Indonesia we may see the ineffectiveness of government in bad transportation, bad environment condition such as pollution, traffic congestion, disaster such as flood. Long term the root problem of whatever cause the need for intervention has not been solved, or only parts of it are solved. This has been true of all government interventions. For example traffic congestion problems. Government tries to solve it by reducing the amount of car by increasing the tax of a car, make a regulation for one day not using the car only by walking, government also need to make a side walk using the money they get from the tax instead of making bus way that is used for bus only but instead they used it for car and does not solve the traffic congestion, lower the cost of using public transportation like trains buss, and many other.
In my conclusion, I agree with government influences in business, because it has good objective to be reached. It can make and ensure the safeties of business in a country. This will make the level of crime to decrease and it can stabilize the economies activities in a country. Unfortunately, government cant fulfill his job really well in a short time of period. They need a long time of period to fulfill their objective. Well, they can do it in a short time of period, if their might be a small chance of corruption in a country. Because all the money from the taxes ,can be used for government objectives.
References:
http://smallbusiness.chron.com/role-government-business-803.html
http://www.scholastic.com/browse/subarticle.jsp?id=1698
http://www.investopedia.com/articles/04/051904.asp
http://tutor2u.net/economics/revision-notes/a2-micro-competition-policy.html
http://www.investopedia.com/terms/m/monetarypolicy.asp
http://www.ehow.com/info_8646461_advantages-disadvantages-government-intervention.h
86% Unique Content
Government influence in market economy to maintain the stability of economic, such as setting the price, if the price increase, government have to cut of the maximum price of the product. Government also acts as employer. For products that are needed by people, government is important for the economic stability. The function of government in market economics are, to provide goods and services that are in the public interest , to invest in national infrastructure , to support agriculture and key industries, to manage the macro economy, to reduce inequalities in income and help vulnerable.
ReplyDeleteThere are many problems in Indonesia; the problems are corruption, pollution, inflation, traffic congestion, unemployment, scarcity, poverty, and low public services. Corruption makes people who have high position and authority will be wealthier and low class people will become poorer. so the government must wipe out corrupter. Pollution keeps on increasing because many industries throw away their waste to environment and it affects people that live near the environment . Government have to provides the solution so that pollution wont get worst, such as industries have to plant a hundred trees. Inflation cause and increase price of product , government have to maintain the interest rate and the price of product so that when inflation is present, people can save more money in bank to , keep the inflation low. Unemployment keeps on increasing now days, government have to provides more job by opening public company or subsidies small firms so that they can expand their activity and can employ more workers, scarcity happens when goods that are needed by people , are not sold in market , government needs to predict the availability of the product so that scarcity will not happen.
The increase of productivity and efficiency affected by government’s decisions in macroeconomic of aggregate demand and aggregate supply will determine the equilibrium level of price and total level of output and employment . therefore, it has a demand side and supply side. Government will therefore use policies instruments or quantity and action it is able to control , to influence or alter aggregate demand and supply in there economy to help achieve their macroeconomic objectives for inflation , employment , output , international trade.
The demand side policy instruments can be effective for three reasons , the amount of consumer have to spend, depends on their level of disposable income. Taxes on profits will affect the amount of money firms have to invest in new productive capacity. Increasing public expenditure can boost total demand and stimulate higher output . supply site policy. Supply side policy instruments will include specific public expenditure , changes in individual taxes , new regulation and reforms.
Governments also have physical policy, physical policy involves varying the overall level public expenditure and or taxation in an economy to manage demand . government also have monetary policy involves changes in money supply and or interest rate in an economy to influence the level of aggregate demand and economic activity, by using monetary policy and physical policy government can push firm to make more products and a production will be more efficient .
In contrast , the increase of productivity and efficiency actually is not determined by the government’s policy, all depends on each industries , if the industries have a good management they can maximize the productivity and efficiency. So productivity and efficiency is not controlled by government , majority is more to the industries.
To be concluded , i am not satisfied with the Government role in Indonesia , because Government not fully encourage the productivity and efficiency Government policy make firms motivated to produce more goods and services and increase efficiency , but the decisions of productivity and efficiency is held by each company.
Reference : Complete Economics for Cambridge IGCSE & O Level second Edition
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The government plays an active role in the economical development of a country, they can help by controlling the price in the market.The government can act as an employer, a producer, and as a consumer.They create regulations that existed to remove inefficiency.The government exist to help solve problems in a country, some problems that exist in Indonesia include, corruption, pollution, inflation, poverty and unemployment.The government did put some effort in solving these problems but until now they can't solve these problems that exist within the country.
ReplyDeleteI'm not that satisfied with the current government's influence on the market as well as on the people's life.But my main concern is that the government is currently bringing negative impacts to the country's market. They're didn't punish monopolies enough, even if in the public's eyes monopolies are well controlled by the government, but in reality some of those monopolies are still roaming freely in the market destroying their rivals and causing more unemployment.Taxes for production are also sometimes sloppy, they are not giving enough taxes to those producers.Well they did a good job controlling the prices before, but now we see the price of certain products essential for us is increasing rapidly. There was a time when the price of chilly and other basic needs are really high, the government can't help increase the supply of those products, so the government kind of failed, it was pretty disappointing. The government are also causing the market negative impacts, they tend to corrupt and it will not help increase productivity and efficiency in the market.
The government could sometimes help increase the productivity and efficiency of a market.They create these rules and regulations in the market to reduce inefficiency,they act as a consumer to help control prices,if there are leftovers in the market, they will buy them and they'll have more buffer stock. They also help control the producers, they could help by giving them subsidies and they could limit/stop them by giving them taxes.
The conclusion is that, I am not satisfied with what the government is currently doing here in Indonesia, they tend to focus more on gaining profits for their business that they personally own and they tend to corrupt more.In some cases they are also not able to help our market.
Reference:
-Complete Economics for Cambridge IGCSE & O Level second Edition
Originality:100%
Government has important roles in an economic development of a country. They act as employer, producer, consumer and also regulator. With those roles, Government must solve many problems in their country they manage such as Indonesia, Jakarta. In this city, it has many problems on it which sometimes hard to be solved by government In Jakarta. Such as corruption, pollution, inflation, traffic congestion, unemployment, poor public services, and also poverty. These problem are caused because of over population, unemployment which it feeds poverty in society, and lack of governance. And the consequences for this problem are least developing, poverty, increase the number of crime, undeveloped infrastructure and less skilled workers. To solve the problem in Jakarta, Indonesia, government have to work hard in it. They have to reduce pollution by decrease the use of vehicles and increase the number of public transportation. Increase wages of workers to make them feel satisfied. Price control to decrease the possibility of inflation. Create more jobs and fields to decrease the amount of unemployment. And increase subsidies which Is granted by the government or a public body to assist an industry or business so that the price of a service may remain low. But sometimes when government take an important role in a country, they can interfere some companies, firms and markets which it leads to satisfactory or unsatisfactory to many people in society.
ReplyDeleteThere are a lot of advantages if government take important roles in an economic development of a city such as Jakarta. Which their role in an economic development of a country increases the satisfactory of people live in Jakarta. When government act as employer, they provide 2 sectors in Jakarta. First is the central government. They provide irrigation, statistical department, defense force, such as army and navy. Certification, central university, research organization and justice department. Second, provincial level. It provides education such as teacher. Public works department such as the workers are making roads. Fire services, and Police to protect the country from crime, etc.
When government act as producer, they provides public firm (corporation) to reduce the number of unemployment in Jakarta. They provide education for many people to increase their knowledges and skills which may increase the number of skilled workers to make firms and corporation satisfied. They must provide health care such as public hospital and public clinic because it is a basic right for all individuals to have health care. Last, government also provides public transport services such as rails, roads and public bus such as TransJakarta. They provide public transportation with a goal of reducing private vehicles use and reduce pollution that occurred in the city of Jakarta, Indonesia. And to decrease the number of unemployment in Jakarta.
When government Act as consumer, they control the prices such as buffer stock which is a basic goods. Buffer stocks provides emergency which emergency is non productive seasons. They control The prices to decrease the possibility of inflation caused by aggregate demand more than aggregate supply, firm monopoly and to help poor people to get their needs and wants. Also they provide purchase consumer or capital goods for public servant.
As government act as regulator, they allocate rules and regulation to be followed by the society. They remove firms which held a monopoly. Also they remove inefficiencies which is monopolies and restrictive trade practice. And they have regulating authorities. Which is check, quality, inefficient and prices. Regulator is the most important role than the other roles because regulation may change the economic development of a country.
The disadvantages for peoples live in Jakarta is depending on the actions taken by government to change the economic development of a city such as Jakarta. In other side, government intervention may result in greater inflation and greater amount of public debt. Inflations are caused when government act as consumer, they increase prices in a market to make most of people feel unsatisfied with what the government do to change the economic development to be a better economic development. Greater amount of public debt are caused because government often borrows money to pay for subsidies that will be given to poor people. When government often borrows money, it will increase the interest rate which may lead government can't pay the debt. This problem can may cause Indonesia's image go down because they are famous because of corruption and the debt that they can't pay.
ReplyDeleteFor businesses, firms and markets, Government's intervene may interfere the possibility of firm monopolies which may be a disadvantage for them. And for those people who are not satisfied with what was done by the government which sometimes adds poverty, for peoples who need money, education, healthcare, they will do anything that may cause the increase of crime in Jakarta to fulfill their demand.
When government acts as regulator, they must follow the rules and regulation they make to prove that they are trustworthy. But in reality, they can't follow their rown rules and regulation well. But they just increase the number of corruption that has been occured in Indonesia. The cost of intervern by government are paid by the people which the money must be used for subsidies, public transportation or public services. But In fact, the money for the society was corrupted by government for his own benefit not for the people. And this government action will create a growing poverty, death In the absence of public hospitals, etc. When the people are paying taxes made by the government which is intended that the tax money will be used for infrastructures, buildings, and public services but in reality, the government just use the money for theirselves but not for the people which may cause bad public transportations, bad environment condition such as pollution everywhere, traffic congestion, and flood.
In conclusion, the role of government in a country must be satisfied by a lot of people in the country. Without government who manage the country, the country will be destroyed because there Is no any rules and regulations that will be followed by the society, it will obviously increase the number of crime, also increase the number of poverty and unemployment. But when government active in a country, the country will be much more better instead when government passive in a country.
Celia Pricilla 8A
References :
- http://www.debate.org/opinions/should-government-provide-healthcare
- Economics Lecture
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Government acts as a producer, consumer and regulator in an economy. Its role as a regulator includes setting laws and regulations in the economy, collecting tax revenues, fees and penalties, requirement of information on businesses and restriction on approvals. When businesses misuse their power or exploit their resources and market failure happens, government intervention is required. Government intervention is regulatory actions taken by the government to interfere with decisions made by individuals, groups, or organizations which deal with social or economic matters. The government’s role in an economy has a goal to increase social efficiency and equity. Social efficiency is said to have happened when the marginal benefits to the society for production or consumption is equal to the marginal costs for production or consumption. Equity, however, is difficult to measure as we do not have a subjective measure of what and what is not a fair distribution of resources.
ReplyDeleteEvery economy is impossible to function smoothly without some level of government intervention present. Government intervention in the market prevents some companies in getting so large that they are able to control the prices of their goods and services in the economy. These companies may monopolize the market if government does not act. Monopolies bring benefits mostly to the company itself, but production will be inefficient and goods may be sold in limited supply and high price. One way the government is able to intervene in this situation is to break up the monopoly by force into a series of smaller, competitive firms. An example of this is the fragmentation of AT&T in 1984. MCI, Sprint and other companies were able to compete in the market effectively afterwards.
The burst of the housing bubble in late 2006 caused the global financial crisis during 2007-2008. The Great Recession brought about numerous interventions by the government. In the U.S., the Congress approved bailouts, or money infusion, to mortgage giant Fannie Mae to prevent complete collapse, keeping auto manufacturers out of bankruptcy and an $850 billion economic stimulus bill. Its objective is to stabilize the economy and reverse the high level of unemployment. Without government intervention, U.S. might have fallen into the Second Great Depression.
A form of government intervention is setting the minimum wage legislation. A minimum wage is the lowest remuneration that employers may legally pay employees, either hourly, daily or weekly. The legislation prevents employees from being exploited by being paid unfair wages and forced to work longer hours than agreed, because the company would then have to pay the worker higher wages. If both the company and employee agree with the amount of minimum wage, it will reduce poverty, raise the standard of living of workers, reduces inequality and economic gap, boosts worker morale and forces businesses to be more efficient to generate an equal amount of revenue compared to its revenue before the legislation is applied.
Government influence may also be in the form of fiscal and monetary policy. Fiscal policy is the use of the government’s revenue collection, or taxation, and government expenditure to influence the economy. It involves the government changing the level of taxation and government spending to change the aggregate demand of a product. Keynesian view economics states that in the short run, particularly in recessions, aggregate demand greatly affects the economic output. It suggests that increasing the government expenditure and reducing tax rates (expansionary fiscal policy) will boost aggregate demand. After the economic boom, decreasing the government expenditure and increasing tax rates (contractionary fiscal policy) will yield likewise results. Keynesians argue that this is the best way to increase economic growth and work to full employment in times of recession.
Monetary policy is the situation when a monetary authority controls the money supply, usually targeting an interest rate to boost economic growth and stability. Monetary policy, like fiscal policy, may be expansionary or contractionary. Expansionary monetary policy increases the money supply of a currency in a country more rapidly than usual. This is used to combat unemployment in a recession by lowering interest rates in hopes that easy credit would encourage businesses to expand and employ more people. Contractionary monetary policy decreases the money supply of the country’s currency. It is used to slow down inflation, to avoid distortion and/or deterioration of asset values.
ReplyDeleteHowever, government may fail in times of influencing the market and doing market intervention. This is referred to as government failure: it occurs when government intervention, rather than fixing market failure, causes a more inefficient allocation of goods and resources. Breaking up monopolies, in many cases, would yield more disadvantages than advantages. Breaking up monopolies will result in smaller firms with lesser amount of capital to invest in large-scale production and research and development for new products and more efficient production methods. These small firms, as a result, may be less efficient than the monopoly itself. They will also, almost definitely, produce goods at a higher price than a responsible monopoly, as producing in a smaller scale would require higher cost per unit.
Government influence in the market has caused many negative effects. For example, many people have argued that the U.S. government was one of the causes to the subprime mortgage crisis, which led to the financial crisis and subsequent recession beginning in 2008. One of the narratives, mentioned in NY Times on December 21, was that the U.S. President Bush over promoted growth in home ownership without effectively regulating banks and other mortgage lenders that made bad loans. As a result, it created a bank system with junk mortgages, which generated continuing losses that are pulling down the banks and economy. Another narrative is the long running government policy, using the Community Reinvestment Act (CRA) – an act to reduce discrimination in credit loans for houses for low- and moderate-income neighbourhoods. Economist Stan Liebowitz stated in the New York Post that CRA encouraged a loosening of lending standards throughout the banking industry. Many low-income households are delinquent in their mortgages are most will end up in foreclosure. The two contradicting statements – the first was to increase regulation, while the second would be to eliminate the government policy to prevent distorting mortgage lending – concluded that the 2008 crisis was in fact, partly caused by government influence in the housing market.
The minimum wage regulation also plays a part in higher unemployment. When the minimum wage law collides with the law of demand i.e. less demand with higher wages, the law of demand always wins. This will result in higher unemployment for workers, as firms are no longer willing and able to pay for their labour. The minimum wage law will also increase poverty. If a person is paid with a minimum wage of $5 per hour, it is still better than a $6 minimum wage but no job. As more people will be jobless, more people will fall into poverty. The law may reduce other job benefits. When employers are required to pay higher wages, they will respond by cutting other work benefits such as holiday entitlements, insurance, and pension funds.
In many countries, the government itself is not transparent and many officials may be corrupt. Tax collection would render useless if they are used for personal benefits rather than for the development of the country. Regulations may be set only to fulfill the needs of single officials and their parties, but would eventually bring disadvantages to the country’s economy. The unsatisfying work of the government has been criticized a lot of times, especially for the lack in quality of public and merit goods provided.
ReplyDeleteHowever, the role of the government is crucial in building a healthy economy. At least some level of government influence must be present, or the country or political state would be fully a free-market system where inequalities and exploitation of resources happens for the good of companies and their assets.
1. http://www.pc.gov.au/projects/study/regulation-benchmarking/local-government/report/key-points
2. http://www.businessdictionary.com/definition/government-intervention.html
3. http://en.wikipedia.org/wiki/Government_intervention
4. http://thelawdictionary.org/article/what-are-the-pros-and-cons-of-government-intervention-in-the-economy/
5. http://en.wikipedia.org/wiki/Fiscal_policy
6. http://en.wikipedia.org/wiki/Government_failure
7. http://en.wikipedia.org/wiki/Monetary_policy
8. http://spectator.org/articles/42211/true-origins-financial-crisis
9. http://www.ncpa.org/pub/ba550
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Government intervention means a regulatory action taken by a government in order to affect or interfere with decisions made by the individuals, groups or organizations about social and economic matters. The role of government can act as a consumer, producer, employer or regulator. It can both either bring satisfy or unsatisfied results to the market and may affect the society.Government has an important role on the country because they decide everything and also provides food security and facilities.They also improve and develop the city in order to gain better reputation.Some government objectives are to provide goods and services that are in public interest like national parks,street lightning, to invest in national infrastructure, to support agriculture and key industries,to manage the macro-economy and to reduce inequalities in incomes and help vunerable people.One of the use of government intervention is for fixing and controlling the condition of the country because of the problems there, such as corruption, pollution, crimes, unemployment and poverty.
ReplyDeleteWhen government act as a producer, the advantages are firstly it provides basic goods and services to people by making public firms or corporation such as, for example: railway, roads, PLN and PAM. Also sometimes education or health care with low prices but also lower quality of the service, this enables them to afford and use the service. Government also gives subsidies to people with low income in order to help the poverty and cover up their needs, subsidies can be in formed of foods, shelter or jobs. Another benefit is that jobs are created and given to unemployed workers to reduce the unemployment. While as consumer, government buy goods from other small and large companies to help their financial condition and earn more sales. In this way, companies are also encouraged to compete in the market against other companies. Aside from that, they control the price of the buffer stock. Buffer stock is a supply of inputs held as a reserve to guard against the unforeseen shortage or demand. And for government acts as employer, they are divided into two parts which firstly is called central government, it is the government of a nation-state and is more towards a characteristic of a unitary state, its job is to be responsible for local government elections and some legislative works, some examples include defense force or soldiers. The other part is provincial level. Its goal is to satisfy the wants and needs of the people. Last advantage, government can correct market failure, for example: when the marginal social cost is greater than marginal social benefit or vice versa.
In the opposite side, there are some sides of negative effects too, not all governments are trying to work on their main objective. First are taxation and the cost of raising funds will be expensive which reduces the profit. Overexpansion of government can results in the difficulties of cutting back as it will be hard to control. Large companies may be unsatisfied because government interfere any companies that tries to make a monopoly over the whole market as it will affect other growth and competition, when there’s monopoly, small company will lose and cannot compete there, example of monopoly companies are Apple and Samsung. Also when government is the regulator, there are some possibilities where government may corrupt and not responsible for the actions, this can affect the society by the increase in poverty because of the slow growth of economy and infrastructures, for example in the city of Jakarta. This in that way, government keeps on gaining profits from the taxes earned but it is not used for the city development, this can be called by personal freedom like the cost of developing will be 20 million but they only used half and the other for their own use.Where now educations are still low, unemployment rate are high and pollutions are not fixed yet.Lastly,government is liable to make decisions, this is because they are influenced by political pressure groups, they spend too much on inefficient projects which leads to inefficient outcome for the public.
ReplyDeleteIn conclusion, I am satisfied in with the government, because government plays an important role and manages and build the country, they also influenced the market and country upon the decisions they made.
References:
1. Lecture Notebook
2. Complete Economics for Cambridge IGCSE&O Level, Second Edition, Dan Moynihan and Brian Titley, Unit 5.1 Government economic policy, section 1 pg. 278
3. http://www.businessdictionary.com/definition/government-intervention.html
4. http://www.businessdictionary.com/definition/buffer-stock.html
5. http://en.wikipedia.org/wiki/Central_government
6. http://www.ask.com/question/what-does-the-central-government-do
7. http://www.economicshelp.org/blog/5735/economics/should-the-government-intervene-in-the-economy/
8. https://uk.answers.yahoo.com/question/index?qid=20070505071809AAuhQXP
100% Originality
As it is said, it is true that the government plays an important role in the development of a country. In a country, government acts as an employment, producer, consumer, and regulator. Becoming a government is not an easy thing and not an easy decision, because to be a government we need to think hard about the future of our country and thinking what to do best for the country to make it more develop. If the government takes the best decision our country will be more economically developed. Government can either satisfy us or unsatisfied us. In Indonesia, my country, there are still many problems the government should take care of. The main problems are mostly pollution and corruption. But there are still many problems like inflation, traffic congestion, low quality of public services, poor people (poverty), scarcity of resources, and many more problems out there. All these problems are caused by too many people living in a country, unemployment, lack of governance, and lack of education. And the consequences to these problems are the country can be not developing again, poverty, many crimes, many buildings are under infrastructure, less trained or educated workers, and many more. But actually there are ways that the government can do to solve these problems, although it might be hard. Some ideas are like increasing the prices of vehicles or make the 3in1 rule to decrease the use of vehicles and make pollution least, increasing wages or non-monetary rewards for the workers so that they want to work their best, doing price control of demand and supply to decrease inflation, and make more jobs by the government perhaps to decrease unemployment which lead to poverty. If there is many poor people in the country the image of the country will be bad and less tourist will visit the country. As an employer, government employs workers to work so that it can reduce unemployment. There are two types which is central and provincial. In central government, there is irrigation, defense force, statistical department, certification, central university, research organization, and justice department. And in provincial level there is education for people who is too poor to pay for education, public work department, fire services which is free of charge but we need to pay taxes more so that the government can pay the workers in the fire station, and police, police is also paid by the government because without a police, the country may be a mess, people won’t use seatbelts and they will not obey the rules, so government employed polices. To be an employee of the government, it is a very cool thing because they can have more security in comparison to working not with the government. As a producer, government can create a public firm which employs more workers and in that way it can reduces unemployment, governments also can provide education for free for people who can’t afford them and in this way there will be more skilled and trained workers in the future.
ReplyDeleteAs a producer also, government can provide free health care for people who is too sick but can’t afford a luxury hospital, but we should also pay more tax for this. And providing public transport such as Trans Jakarta, although rich peoples have their own car and no need to use that public transport. But the government hopes that fewer vehicles are used so that it will decrease the pollution of the country. As a consumer, a government can control price to decrease inflation which is cause by more demand than the supply provided. The most important role of a government, which is as a regulator, is to make rules and regulation for the country and make sure that the people in the country followed them. In this role, government can also remove firms by monopoly and remove the inefficiencies. This role is very important to make a country more economically developed. So to summarize it all, the advantages of government intervention is that it provides free services for people who are very poor and reduce poverty in the country, and make the problems in the country lesser, but in order to do this, a government should think very hard and it is not easy to become a government, so we should respect our government. On the other hand, the disadvantages of the government involvement in the country are the government can corrupt the country’s tax, and make more inflation, and the government might fail to make a solution to the country’s problem. So in conclusion, I agree that I am satisfied that the government influences on the market can increase the productivity and the efficiency in the country.
ReplyDeleteReferences :
1. https://answers.yahoo.com/question/index?qid=20060718082709AAMcn4L
2. Economics notebook
Originality : 95%
Audrey Tan 8A
A government is the system of people, officials, and laws that control and define the country you live in. There are many kinds of government, but they all do basically the same thing: to “govern”, or to oversee the rules, regulations, and interactions of the individuals who lives dependently on them. Government Intervention are regulatory actions taken by a government in order to interfere or affect decisions which are made by organizations, groups, or individuals regarding economic and social matters.
ReplyDeleteProductivity of a country can be significantly influenced by the government that controls it. Generally, an MEDC or More Economically Developed Country has less corrupt government officials, even though the numbers are not small and insignificant. As MEDCs are generally richer than LEDCs such as Africa and the Middle East, the amount of corruption done by the officials do not as greatly affect them as much as they affect developing countries. Government of developing countries often wants to encourage their citizens to find an occupation, so that they can be less dependent on subsidised goods and services. To help this, and to pursue government goals and objectives, they create fields of jobs in different departments of the government. This has 3 beneficial effects on the country. First of all, unemployment can be significantly reduced, and more individuals can feed their families, therefore the GDP of the country may increase. Second, more individuals have the capability to pay taxes accordingly; therefore the government will receive more finance for national use. Third, research and development departments in the government can discover cures for a certain disease, or new innovations that can greatly benefit the people, as well as the country. If the goods are only produced in the country, they can export it to gain more income for developing the country. The government can use this advantage for other purposes, such as production. Public corporations are firms that are run by the government, and can be either public or private, depending on whether they sell their shares on the stock exchange or sell them to known investors, respectively. Public corporations such as electricity supplier, dam management, road installation, public schools, and health cares such as local clinics and hospitals, increases the overall welfare of the society, while at the same time provides a secure source of income for tens of thousands of people. Through these firms, the government is able to produce and provide merit goods and services, which allows more efficiency in working as it slightly reduces the constant worry of starvation, dehydration, or infections. Merit goods and services are goods and services (such as vaccination and education) that are freely provided for the benefit of the entire society by the government, as it would not be supplied if left to private firms or the market forces. An example of a country that benefits fairly good effects from its government intervention is the USA. They have the right mix of government and social participation, and thus have good development of the country, able to produce much government-made innovative goods and services (such as Space Shuttles and high technology satellites, and a good economy.
On the other hand, too much government intervention can negatively influence the economy and society of the country, but not necessarily its growth and development. Some governments want to intervene on many levels of the economy, and hence control the whole country with less or no aspects of democracy. A good example of this is North Korea, and how its government chose to completely control the country, and taking the way of communism. The amount of government intervention in this case is extremely high, and has negative effects on the citizens, along with its market and multinational firms. They have very strict rules, and multinational corporations are generally not allowed to set up their business in their country. Besides too much government intervention, a lack of government intervention is greatly unbeneficial to all elements of a country. As in the case of Indonesia, a largely significant number of government officials are involved somehow in corruption, including corruption itself and the act of bribery for one’s benefits. As a result of this, along with the great lack of participation from the government, and poor management of the country and its finance, the economy of Indonesia is very bad, along with constant inflation, and more Rupiah needed for one American Dollar (exchange rates).
ReplyDeleteTo conclude what we have discussed, i am not satisfied with the effects of government influence on the country’s productivity and efficiency, mainly due to the fact that most government officials in the country are either corrupt or doesn’t want to effectively or correctly do their jobs.
Ivan Alexander 8A
Originality: 100% Based on http://smallseotools.com/plagiarism-checker/
References:
http://www.vocabulary.com/dictionary/government
http://www.businessdictionary.com/definition/government-intervention.html
http://www.mti.gov.sg/MTIInsights/Pages/Government%20Roles.aspx
http://www.businessdictionary.com/definition/merit-goods.html
In our country in indonesia, indonesia is still an development country. So there is so many problem in indonesia. The problem in indonesia that we often know is corruption, many poor people everywhere, less discipline, pollution, scarce of resources, decrease of public services.
ReplyDeleteCorruption can make our country is poor, because they only think about themselves. The corruptor used people's money for their own self. Many poor people everywhere because there is many unemployed people, they don't have a good knowledge, and skills. Less discipline means they don't have a good work, always late to come to the office. Pollution can come because many people use their car, motorcycle or bus in the road. So they can make traffic and pollution. The environment is so dirty and caused many diseases.
Scarce of resources is a lack raw of material. Decrease of public services mean that the services that provide by public is already scares.
The government should take a part in improving market productivity and efficiencies. The are several ways that the government can do such as : remove barriers to trade and investment, improve infrastructure, give additional business to poor people. The government has a big role to make indonesia better.
First, government provide developing countries to remove barriers to trade and investment :
We help developing countries to create the right conditions for growth and investment by working with their governments to create suitable economic policies, good governance and openness to trade and investment.
Second, government give developing countries to improve their infrastructure :
We work with developing countries to improve their transport, energy and water services and supplies.
Third, government help people in developing countries access financial services :
We work to give poor people better access to savings, credit and insurance, including support to 18 million women to access financial services like bank accounts, savings and insurance.
Fourth, government stimulating private sector investment in developing countries :
We work with the CDC (the UK’s bilateral development finance institution) to stimulate responsible and long-term private investment in developing countries.
Fifth, government enabling businesses to include poor people directly :
We work with developing countries to create new approaches to business that generates profits with a strong developmental impact. We work with British and European businesses, providing them with the skills and knowledge to invest profitably in developing countries and deliver development benefits to the poor.
Sixth, government research evidence on promoting sustainable economic development in developing countries :
We generate high quality evidence on private sector and economic growth in poor countries. We work with poor countries to help them use the evidence to find effective ways to stimulate economic growth.
Seventh, government providing debt relief for developing countries :
We work with international organisations to provide debt relief for developing countries.
Eight, government developing countries to improve their provision of basic services :
We work to improve private sector provision of basic services for the poorest by helping developing country governments and the private sector providers of education, health, water and sanitation.
As the results, the government takes the big role to make indonesia a better country. The government can use its own power to open the door between indonesia and other country to make the relationship more closer. The indonesians should cooperate with government to develop the country.
reference :
www.gov.uk
originality : 75 %
Government have several important role for a particular country, they act as its employer, producer, consumer, and regulator. Government also have the most important role which is they need to solve several problems. Corruption, pollution, inflation, traffic congestion, unemployment, scarcity of resources, poverty, and low public services are the example of problems that we can found in Indonesia. All of these problems happened because there is over population in Indonesia, many unemployment, and unemployment can cause poverty, they lack of governance, people in Indonesia have low education, they have no skill so they can’t work and become unemployment, and environment can be the source of this problems. There is also the consequences, that particular country will become low economically developed country, it can increase the level of poverty, it will also create crime, their country will have undeveloped infrastructure, and they will have less skilled workers. In this case, government which act as the employer, producer, consumer, and regulator in a particular country need to solve all those problems because they will regulates all the market activities and by having this, it will bring advantages and disadvantages for the society. We will discuss more in the next paragraph.
ReplyDeleteWhen government play important role in a country, it can bring benefit for that country, for example Indonesia. When government act as a producer, they act as the ppublic firms(corporation) which known as SOEs, PSEs, PSUs. Government also will produce public transport that can fulfill the satisfactory of the society. Transportation facilities include the rails, roads, and Trans Jakarta. Government is the one who produce all this services and many people get the advantage. Government also produce education and healthcare. They produce free education for people that is poor and free healthcare. And the last but not the least, government produce basic service for the society.
When government act as a consumer, firstly, they control the prices of a goods. When buffer stock happen, or in other words it is an emergency situation of food graine or basic goods, the price of that goods will increase. This usually happens in non productive season. Second, they purchase consumer and capital goods for public servent or services.
When government act as a regulator, it means that they will regulate everything by creating rules and laws in order to complete their role as a regulator. In this case, society have to follow those rules. They will have regulating authorities which can check the queality, ineffience, and the prices. They also will remove inefficiency by remove the monopolies amd restrictive trade practices.
But, in other side, this will also bring disadvantage. When government play important role in a economy of a country, most of them can do corrupt and bring disadvantage to the society instead of benefit. Sometimes we already pay expensive tax for the public services that is provided by the government, but we are not satisfied with those facilities. For example the Trans Jakarta, Fauzi Bowo, the DKI Jakarta Governor said that the Trans Jakarta still not working well because they still have very bad service and Trans Jakarta not yet attract the private vehicle users. Fauzi said that many people still not satisfied with the service especially the arrival time of the buses. This makes many people become unsatisfied with what government has done, and this create disadvantage for the society. Government also can give very high amount for tax, which can reduce our real income. when government act as a regulator, they are the one who regulate everything and this can lead to the corruption of the government. When they do corruption, they will increase the level of unemployment and poverty because they are not improving all of their services.
ReplyDeleteIn conclusion, government plays important role in the development of the country. Through various measures it directly or indirectly regulates the market activities. As government influence the market, it increases productivity and efficiency in the country. And government can bring many advantages to its society, they provide public transport, such as roads, rails, and Trans Jakarta. They also control the prices of a goods and they create rules and regulation that needs to be followed by the society.
Vienetta christina
Originality : 97%
References :
1. http://www.indii.co.id/news_daily_detail.php?id=3231
2. http://www.economicswisconsin.org/guide/glossary.htm
3. Complete Economics for Cambridge IGCSE&O Level
4. Lecture notebook
Nowadays in Indonesia there are many problems. The problems are corruption, pollution, inflation, traffic congestion, unemployment , scarcity of resources, poverty, and decrease in public service. All of the problems need to be solve by the government of Indonesia. The factors affecting the problems are overpopulation, lack of governance, education and the environment itself. The government is trying to solve all of these problems. The government already done the best they can to satisfy us but some of the people are not satisfied.
ReplyDeleteThe role of government in economics are as an employer, producers, consumer and regulator. As a producers is to make job employment. Government open a public company, provide better public transportation like increase the number of bus of Trans Jakarta, provide education and healthcare like open a public school and give free check up to the people and government share a basic needs to the people who need it. Government as a consumer is to control the price of the goods and purchase consumer goods for upgrade the public services. the government as a regulator is to make regulation to remove efficiency. As a employer, government give job to the people who needs the job to reduce unemployment. The government employ the people to work in the public company like the immigration, defense force, justice department and customs. The government work in 3 level : central government example immigration office, defense forces and research organization. Province government example providing education. District government the example of it is the cleaning service.
Some of the people think that the government is useless in economics because sometimes the government fail to help the economics. For example the government fail as a employer. The government fail to become employer because some of the employee is unskilled worker so the work will be bad for example the police is easy to be bribe by the people. But in some cases the government corrupt the money of the people. It happens every year in Indonesia and it just make our country reputation worse than before. The governments also fail to be the producers because in Indonesia the public transportation service Is bad, low education and healthcare just like in Africa. The government also fail as a regulator because the government is making a regulation that they maynot corrupt but the corrupt. The other is the government fail to save the resource in this country because the government have sell almost all of the useful resource of this country.
In conclusion I say that the government have fail so many time so that our country is becoming worse. The government is useless in this country because they corrupt and fail in this country. the government must think fast and act right to help the economy in this country.
reference:
1.colour notebook\
unique content
97%
Government plays important role in the development of the country. It acts as a producer, consumer and regulator. In order to solve the problems that Indonesia faced, we need government also to work together with us. As its role, it has advantages. As regulator, it includes preserving competition in a market place, and also oversees interstate commerce, entire industries, and communications. Its authority is that government can check the prices, quality and inefficiency. So they can remove the inefficiencies in market. Government also act as consumers, in order to control the prices of goods. For example is medicine. Also, it’s to purchase consumer or capital good for public services. Government also acts as producer, where they have public corporation, also transportation (e.g. rail and transjakarta as example in Jakarta), education, healthcare, and basic service. The disadvantages is that, it can cause higher inflation because they increase the price and it make people that not rich unsatisfied. It also can cause higher crime because for poor people, it’s even hard to have better healthcare and even eat. And it also can cause public debt as government give subsidy to poor people. And when we give tax to government, the government in Indonesia sometimes does corruption, where the money won’t use for make our country better, but it makes our country’s image become bad. So in conclusion, I can say that government influence give more negative side rather than positive one.
ReplyDeleteOriginality: 100% unique content
reference: economics notebook
Government could satisfy the satisfaction in the influence of a market. Government have roles as an employer,producer,consumer,and regulator.When businesses exploits their resources and when market failure happens, government intervention is required. The government intervention is a regulatory actions that is taken by a government in order to interfere with the decisions made by groups,individuals, or organizations regarding with economic and social matters. There are types when government roles as a employer, central government and provincial level. In central government, they give labour for unemployment workers which workers would work for search and development and as an immigrant and as a defense forces where for examples are army,naval, and air force where unemployment decreases. And as the provincial level where they are working as a teacher, or on the public services, or on the fire services. And as producers where they are providing public firms or corporation and transports,education and healthcare,and basic services.These services are paid for the government by the citizens by tax,where services are given to the individuals,groups,and organizations.Government act as a consumer where they control the prices and the purchase consumer or capital goods for public services. The government also act as a regulator, where they give regulations or laws for the citizens as they could also regulate authorities which they check and maximize the quality,inefficiency, and the price. Which the regulations would control the monopoly firm to be too strong and to remove inefficiency.
ReplyDeleteAs government acts as a regulator, the power of the monopoly firms would be decrease as government would try to increase the tax as the government are supporting other competitors joining the competition. It also remove the inefficiency from the monopolies and restrictive trade practice. Which by removing inefficiencies, the prices would decrease as the production rate increases. Government could control the price in the market where they could make more efficiency in the market and as prices increases, in the market production rate would increase. Barriers of competition must fall if wanting productivity to gain. And government could influence the market in increase if productivity by increasing the quality of the education for new generations to come. And the competition must be reduced as prices would fall down in competition and productivity would rise and they would try to achieve economies of scale. And as there is a minimum wage legislation which increases the minimum wages, it decreases poverty as wages is increased for the workers.
Government may sometimes fail in influencing the market and doing market intervention, where this means that they are having government failure, where rather then fixing or increasing the efficiency it would cause more inefficient allocation of goods and resources. And as breaking up monopolies, it would mean that smaller firms would enter the market where they would have less skills than monopoly firms which would cause to have less production and inefficient for the market.Minimum wage legislation could be a form of the government intervention which minimum wage means that the least possible amount of wages given to the workers is increased. Which by this, it may cause an increase of unemployment as wages for other workers are used for increasing the wages, and as more unemployment, less workers are there which makes less production of goods. When the cost of the bureaucracy outpace of the profit making businesses can effeciently produce, government demand rise up prices, which means inflation is made. And as there is inflation,prices would rise up where poverty is increased which also might influence the market where the price of the goods and resources are increased.
ReplyDeleteAs government could act as a regulator where they might remove monopolies, which by removing the monopolies inefficiency might be removed and as there are smaller firms entering the market, production of the goods and services would be increased, but this is not always increased, because by breaking the monopolies the smaller firms still haven't have any skills or technology which might be more efficient and production might still be higher as they have the technology. As government takes money from the private individuals and firms to pay for the services given. But in my opinion, I am not that satisfied of the government influence the market as there are more disadvantages where it might cause of inflation and inefficient.So,I was not that satisfied as the influence in the market given by the government can cause inefficiency and less production of goods and services, as the government may act as a consumer,producer,employer,and regulator.
Unique content:100%
Reference: http://c.washingtontimes.com/neighborhood/edge-precipice/2013/dec/26/when-taxes-cause-inflation/