the effects of the following government policies on the market equilibrium. Incr
ID: 1234420 • Letter: T
Question
the effects of the following government policies on the market equilibrium. Increases in the Minimum Wage Restrictions on International Trade Pollution Controls Natural Monopolies and Antitrust RegulationWhen analyzing these policies, include some discussion of the following points when appropriate: What is the purpose of the policy? Why is the policy necessary? The welfare of consumers, producers, and society (the winners and losers) before and after the policy The distribution of costs and benefits Does government intervention improve the situation?
Explanation / Answer
Answer
most developing countries have minimum wage laws,in principle,guarantee low skilled workers a wage high enough to cover their basis needs.
low skilled workers means increase in unemployment such a situation may or may not arises as result of minimum wage legislation.
1) Restrictions on International Trade:
when there are no skill full workers and having no business plane automatically it will violate the international trade rules due to which it may be restricted.
2) Pollution Controls
once again the minimum wage laws are implemented here.if there are no proper resources,skills and budget pollution of the environment will increase to UN expected limit.
3) Natural Monopolies and Antitrust Regulation
Natural Monopolies is very important.when different companies come straight forward
for a same firm a competition increases due to which prices reduces, employment increases and the standards of a common person also increases.
a) purpose of the policy
purpose of this policy is to control the unemployment and poverty of the state.
b) this policy is very necessary for the standards of a common person.because if not so then poverty will increase,it will also effect the health conduction,it may became a barrier for the development of the any country.so very important policy for the development of the state.
c) this policy is no so much effective but it can just a step towards for the welfare of the society and development of the country.
d)yes the government can improve the situation by implementing such polices effectively.
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