Policy conflicts, Managerial Economics

Assignment Help:

Policy conflicts

In their attempts to achieve the policy objectives, governments often face what are called conflict of objectives.  These arise partly because unlike private individuals, governments strive to achieve a multiplicity of objectives.

For instance, a more equal income distribution certainly conflicts with efficiency in the economic system (which reduces, the total output available for everyone).

Secondly, a fiscal policy which is meant to control unemployment may cause inflation if it achieves full employment or policies to combat inflation might call for a cut in public expenditure which in the short-run may lead to a higher rate of unemployment and a less equitable distribution of income and wealth.

Also the policy of maintaining low council houses rents on equity grounds results in long waiting list; this may be undesirable on efficiency grounds as it acts as a barrier to labour mobility and this in turn may increase unemployment.

A fiscal policy meant to cure balance of payments may not just reduce demand for imports but also reduces demand for domestically produced goods.  This in turn can have a knock on effect in the form of lower output and higher unemployment.


Related Discussions:- Policy conflicts

Explain the confidence interval, 1.  According to an article in San Luis Ob...

1.  According to an article in San Luis Obispo Tribune July 21, 2006 37% of the college freshman and 48% of the college seniors carry a credit balance from month to month. Suppose

Evaluate the regression, Question: (a) The regression results for the ...

Question: (a) The regression results for the quantity demanded of good X is given by ln Q X = 1220 - 9.5 ln P X - 2.21 ln P Y + 1.01 ln M t values (5.3)  (-5.1

Burden of the national debt, Burden of the national debt The extent of...

Burden of the national debt The extent of the burden on a nation of public debt, depends in the first place on whether it is an external or an internal debt.  The burden of th

Demand, factors influencing the demand for dove soap

factors influencing the demand for dove soap

Caselet 1, Plot the demand schedule and draw the demand curve for the data ...

Plot the demand schedule and draw the demand curve for the data given for Marijuana in the case.

Factors influencing demand for a product, Factors influencing demand for a ...

Factors influencing demand for a product These are broadly divided into factors determining household demand and factors affecting market demand . Factors affecting hou

ME, Is a “perfectly competitive market” an efficient mechanism for the allo...

Is a “perfectly competitive market” an efficient mechanism for the allocation of scarce resources? When it is, explain why. When it is not, document reasons for either inefficient

Arguments against protectionism, Arguments against protectionism   Mos...

Arguments against protectionism   Most of the arguments for protectionism may be met with counter arguments, but underlying the economic arguments as opposed to the social, mo

Governmental functions, a)  The most well-organized combination of resource...

a)  The most well-organized combination of resources which can be used to make a given level of output is that which:   b)  The enactment of a guaranteed yearly income for al

Original model again, Thinking about modifications in the model again: Go b...

Thinking about modifications in the model again: Go back to the original model again, but add a marginal propensity to invest, this is, suppose  that I = f ( i and Y). The MPI is d

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