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

Disguised unemployment, Disguised unemployment Situation where some pe...

Disguised unemployment Situation where some people are employed apparently, but if they are withdrawn form this job, total production remains the same. In most developing coun

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

Foreign exchange markets, Foreign Exchange Markets It is the place whe...

Foreign Exchange Markets It is the place where buyers and sellers meet to negotiate the exchange of different currencies e.g. forex bureaus. Exchange Rates These are

Illustrate about sales maximisation, Q. Illustrate about Sales maximisation...

Q. Illustrate about Sales maximisation? The concept that business firms (specifically those operating in the real world) are principally goaded by the aspiration to achieve the

Individual and market demand schedule, Individual and market demand schedul...

Individual and market demand schedule The plan of the possible quantities that will be demanded at different prices by an individual is called Individual demand schedule. Su

Short-run and long-run, 1. Explain the industry and describe the general pa...

1. Explain the industry and describe the general pattern of change of the particular market model. 2. Hypothesize the basic short-run and long-run behaviours of the model in the

Give brief description about economics, Economics is generally defined as t...

Economics is generally defined as the problem of how best to allocate limited resources, limited because needs are characterized as unlimited, but common sense tells us that rather

Discuss quantity demanded and supplied , Supply and Demand Discuss and...

Supply and Demand Discuss and analyze following statement: The Wall Street Journal reported that recent law school graduates were having a very difficult time obtaining jo

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