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

Profit maximization theory of business, critically analysis the profit maxi...

critically analysis the profit maximisation theory of business firm and illucidet the role of profit in business

Scracity and opportunity cost, Define scarcity and opportunity cost. Show h...

Define scarcity and opportunity cost. Show how these concepts are useful in managerial decision making

Determination of optimum output and price level, The optimum output and pri...

The optimum output and price level is always determined with the concepts of revenue and costs-the difference in joint or independent production will show in the differences in cos

M.E, What is the goal of a firm?

What is the goal of a firm?

Describe MRPL and profit maximisation, Q. Describe MRPL and profit maximisa...

Q. Describe MRPL and profit maximisation? The common rule is that firm maximises profit by producing that quantity of output where marginal revenue equals marginal costs. Profi

Evaluate total cost - fixed and variable, Q. Evaluate Total Cost - Fixed an...

Q. Evaluate Total Cost - Fixed and Variable ? Total cost (TC) of the firm is a function of output (q). It would increase with the increase in output, which is, it differs dire

Average revenue (ar), Average Revenue (AR) This is the revenue per uni...

Average Revenue (AR) This is the revenue per unit of the commodity sold.  It is obtained by dividing Total Revenue by total quantity sold.  For a firm in a perfectly competiti

Resources, “Managerial economics involves use of economic analysis to make ...

“Managerial economics involves use of economic analysis to make business decisions involving the best use of a firm’s scarce resources” Explain the statement with suitable example.

Ramsey pricing in detail, Hi Could you please help me with " Ramsey pricing...

Hi Could you please help me with " Ramsey pricing in detail " as I have an assignment.

Elasticity.., elasticity concepts occupies a central place in policy formul...

elasticity concepts occupies a central place in policy formulation explain in details

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