Discusses how the government influeces economic behavior.© BrainMass Inc. brainmass.com October 10, 2019, 12:39 am ad1c9bdddf
You have to think of the individual as someone who makes decisions to maximize her utility. The government knows this, and thus creates policies that influence the factors, through penalties, benefits or attempts to change perception, that are used to make decisions by individuals. For example, while not traditional economic behavior the legal and policing system, where if you break a rule, you will punished (given a probability ...
Effects of government policy on economic behavior