What are the effects of government policy on economic behavior?© BrainMass Inc. brainmass.com October 24, 2018, 8:53 pm ad1c9bdddf
Government policy has a profound impact on behaviour of economy. Broadly one can have three kinds of policies:
1. Capitalist system
In a capitalist system businesspeople decide how to produce efficiently, guided by their desire to make a profit.
2. A socialist system, price and production are determined by government.
Thus in capitalism, "how to produce" is determined by business people's desire to minimize cost and maximize profits; in socialism, it is determined to a much greater degree by government. Hence ...
The effects of government policy on economic behavior are articulated.
Effects of government policy on economic behavior
Discusses how the government influeces economic behavior.View Full Posting Details