Government Intervention
Muhtasari
Markets are powerful, but left entirely alone they do not always produce outcomes that benefit society. A factory has no built-in incentive to pay for the pollution it pumps into a river, a dominant firm has no built-in incentive to keep prices low once rivals have been squeezed out, and an employer paying the bare minimum a desperate worker will accept has no built-in incentive to pay more. Government steps in at exactly these points.
In this lesson you will examine the toolkit governments use when markets produce outcomes that harm third parties or exploit workers: taxation, subsidies, regulation and pollution permits for externalities; competition rules to keep markets working for consumers; and minimum wage laws in the labour market. For each tool you will weigh genuine advantages against genuine disadvantages, and practise describing precisely what a minimum wage does to a labour market diagram.
Malengo
- Government policy to deal with externalities: taxation, subsidies, fines, regulation, pollution permits
- Advantages and disadvantages of each government policy
- Government regulation of competition to promote competition, limit monopoly power, protect consumer interests, control mergers and takeovers
- Government intervention in the labour market: reasons for minimum wage, advantages and disadvantages of minimum wage, the use of diagrams to show impact of the introduction of a minimum wage and the increase of a minimum wage
Maelezo ya Somo
Inapatikana kwenye programu ya Green Bridge
Pakua programu ya Green Bridge CBT kwenye simu yako au kompyuta yako ili kupata maelezo kamili ya masomo, maswali ya mazoezi, na mengi zaidi.
Tathmini ya Somo
Hongera kwa kukamilisha somo la Government Intervention. Sasa kwa kuwa umechunguza dhana na mawazo muhimu, ni wakati wa kuweka ujuzi wako kwa mtihani. Sehemu hii inatoa mazoezi mbalimbali maswali yaliyoundwa ili kuimarisha uelewaji wako na kukusaidia kupima ufahamu wako wa nyenzo.
Utakutana na mchanganyiko wa aina mbalimbali za maswali, ikiwemo maswali ya kuchagua jibu sahihi, maswali ya majibu mafupi, na maswali ya insha. Kila swali limebuniwa kwa umakini ili kupima vipengele tofauti vya maarifa yako na ujuzi wa kufikiri kwa makini.
Tumia sehemu hii ya tathmini kama fursa ya kuimarisha uelewa wako wa mada na kubaini maeneo yoyote ambapo unaweza kuhitaji kusoma zaidi. Usikatishwe tamaa na changamoto zozote utakazokutana nazo; badala yake, zitazame kama fursa za kukua na kuboresha.
- Which government policy involves a fixed, tradable allowance to emit a set amount of pollution? A) Regulation B) Subsidy C) Pollution permits D) Fine Answer: C
- A minimum wage is best described as: A) The average wage paid across an economy B) A wage floor below which employers cannot legally pay workers C) The highest wage a firm is allowed to pay D) A wage set only for government employees Answer: B
- On a labour market diagram, a minimum wage set above the equilibrium wage causes: A) A shortage of labour B) No change in employment C) A surplus of labour D) A fall in the wage rate Answer: C
- Which of the following is a disadvantage of using taxation to reduce pollution? A) It generates no revenue for government B) The true external cost is difficult to measure accurately C) It cannot be adjusted to the size of the problem D) It has no effect on firms' costs Answer: B
- Government regulation of competition aims to do all of the following EXCEPT: A) Limit monopoly power B) Control mergers and takeovers C) Guarantee every firm an equal market share D) Protect consumer interests Answer: C
Inapatikana kwenye programu ya Green Bridge
Pakua programu ya Green Bridge CBT kwenye simu yako au kompyuta yako ili kupata maelezo kamili ya masomo, maswali ya mazoezi, na mengi zaidi.
Inapatikana kwenye programu ya Green Bridge
Pakua programu ya Green Bridge CBT kwenye simu yako au kompyuta yako ili kupata maelezo kamili ya masomo, maswali ya mazoezi, na mengi zaidi.
Vitabu Vinavyopendekezwa
Fanya Mazoezi ya Maswali ya Majaribio
Ungependa kufanya mazoezi ya maswali ya majaribio kuhusu Government Intervention? Pakua programu ya Green Bridge CBT ili kupata maswali ya majaribio na tathmini kamili za mazoezi kuhusu mada hii.
Pakua Programu Kwenye Google Playstore
Kila kitu unachohitaji ili kufaulu katika JAMB, WAEC & NECO.
