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

Pros and cons of commercial transactions, Examine the pros and cons of comm...

Examine the pros and cons of commercial transactions in blood from the egoistic, the utilitarian, and the Kantian perspectives

Progressive income tax, Because the structure of the personal income tax is...

Because the structure of the personal income tax is progressive, a larger share of income is taxed at higher rates as real income increases. Therefore, economic growth automaticall

Profit-maximizing quantity, Aggregate supply Remember that labor demand...

Aggregate supply Remember that labor demand provides us profit-maximizing quantity of L for a given real wage. If W/P is given (as it's in cross model), we can find profit-maxi

Financial development in economy, Financial Development A well develope...

Financial Development A well developed financial system is very essential for the smooth functioning of any economy. One set of important statistical indicators that is used to

Lag length critera, can u please tell me why lag length criteria is used du...

can u please tell me why lag length criteria is used during estimation of VAR model? what is the purpose of lag length criteria and how it can be interpreted?

Explain the basic characteristics of IS-curve, Q. Explain the basic charact...

Q. Explain the basic characteristics of IS-curve? IS-LM diagram IS-curve The IS curve shows all combinations of R and Y where the goods marketis in

Difference between project proposal and project feasibility , Project feasi...

Project feasibility study is needed to make a decision whether the project proposal is technically and economically possible. After finalization of the project feasibility report b

Discuss about the keynesian economists, Discuss about the Keynesian economi...

Discuss about the Keynesian economists The Keynesian economist A. W. Phillips developed short-run Phillips curve analysis in the 1950s. Phillips had researched the relationshi

Components of gdp, Write a 4-5 page paper, double-spaced, Arial 12pt font, ...

Write a 4-5 page paper, double-spaced, Arial 12pt font, 1 inch margins all around (top, bottom, left, and right) that addresses the following news event summarized below In a to

Determining the lm curve, This problem revolves around determining the LM c...

This problem revolves around determining the LM curve, as we did earlier in the term such that money demand (M D ) equals money supply (M S ), however in this instance under differ

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