Government and price-determination, Macroeconomics

Assignment Help:

Government and Price-Determination can be understood as follows:

The government might intervene in the market and mandate the maximum price (price ceiling) or the minimum price (price floor) for a commodity or service.

A price ceiling is the maximum price limit which the government sets to ensure that prices don’t rise above that particular limit (medicines)

A price floor is the minimum price which the Government sets to support the required commodity or service in a society (wages)

Social cost is the cost of an economic decision, whether private or public, borne by the society as a whole.

Marginal social cost is the change in social costs due to unit change in output.


Related Discussions:- Government and price-determination

Why protective coating might fall in vivo, An electronic chip is to be impl...

An electronic chip is to be implanted in the body. During in vitro (in the lab) testing it is observed that the chip will dissolve over time if exposed to liquid with similar pH to

State the monetary base and the supply of money, State the Monetary base an...

State the Monetary base and the supply of money - central bank It is not possible for the central bank to print and distribute money - that would increase their debt without i

Investment banks underwrite ipos, When investment banks underwrite IPOs, th...

When investment banks underwrite IPOs, they are typically sell stock for 5-10 percent more than they pay for it. When they underwrite stock for companies that are already public, t

Central bank, how can a central bank diminish inflation

how can a central bank diminish inflation

Outsourcing to the private sector help reduce the deficit, I need some help...

I need some help organizing an outline for a 5000-6000 word paper. What I am asking for is ideas on how to best organize this topic: "Should Government do it all? Can outsourcing t

Employment, critically analyse the ways at which the government of zimbzbwe...

critically analyse the ways at which the government of zimbzbwe has put in place to address unequal employment opportunities between men and women

Determine in detail about money supply of central bank, Determine in detail...

Determine in detail about money supply of Central bank The central bank will not pay cash when it buys government securities. Instead, it will ask the seller's bank to credit t

Annual income from an apartment, The annual income from an apartment comple...

The annual income from an apartment complex is $20,664. The annual expense is estimated to be $3,414. The apartment complex could be sold for $146,499 at the end of 10 years. If yo

Determine the inflation rate in germany between 1992-2010, Inflation in Ger...

Inflation in Germany Once we have monthly data on a price index we can calculate inflation. In most nations, the percentage change in price index during one month is small. So,

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd