StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Explain and illustrate, using graphs, the effect on economic efficiency of government prices control and taxes. include an example of a government price control - Research Paper Example

Comments (0) Cite this document
Summary
The term refers to the production of maximum goods at the minimum possible cost. Economic efficiency includes two broad concepts. One concept states that the production should be done at the minimum possible cost and there…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.8% of users find it useful
Explain and illustrate, using graphs, the effect on economic efficiency of government prices control and taxes. include an example of a government price control
Read TextPreview

Extract of sample "Explain and illustrate, using graphs, the effect on economic efficiency of government prices control and taxes. include an example of a government price control"

Download file to see previous pages Together these two concepts form the basis of economic efficiency.
Economic efficiency is nothing but the presence of both production and allocative efficiency. Production efficiency is another name of cost efficiency. The term can be mathematically defined as following:
The figures 1.a and 1.b above show the necessary conditions for productive efficiency. In Figure 1.a, productive efficiency is achieved where point MC curve has intersected the ATC (Average Total Cost) curve. At this point, the production of Q1 goods is going to cost the least and at this point productive efficiency will be obtained. The same is shown in Figure 1.b. The point where MC interests the ATC curve is the point where the firm is experiencing the minimum possible costs. Any production at this point is going to achieve the necessary conditions for productive efficiency.
The allocative efficiency is always achieved at a point where the minimum amount of effort produces the maximum result. In other words, any change in resources are not going to increase the output because the currently employed resources are producing the maximum output. If there is room for increasing production by changing the resource allocation, then the point of allocative efficiency is not achieved. In figure 2, the point “C” is not allocative efficiency because resources are underemployed and output can be increased by employing more resource. However, Point “A” and “B” are both allocative efficient because resources are producing the maximum output. There is no room for the increase of the production at this point until there is technology advancement or increase in the population, both of which are long-term considerations.
Economic efficiency can be looked at from another point of view. Economic efficiency can be described as something that maximizes the benefit of a transaction for both producers and consumers. The benefits for consumer and producers can be looked upon as consumer and ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Explain and illustrate, using graphs, the effect on economic Research Paper”, n.d.)
Explain and illustrate, using graphs, the effect on economic Research Paper. Retrieved from https://studentshare.org/macro-microeconomics/1590793-explain-and-illustrate-using-graphs-the-effect-on-economic-efficiency-of-government-prices-control-and-taxes-include-an-example-of-a-government-price-control
(Explain and Illustrate, Using Graphs, the Effect on Economic Research Paper)
Explain and Illustrate, Using Graphs, the Effect on Economic Research Paper. https://studentshare.org/macro-microeconomics/1590793-explain-and-illustrate-using-graphs-the-effect-on-economic-efficiency-of-government-prices-control-and-taxes-include-an-example-of-a-government-price-control.
“Explain and Illustrate, Using Graphs, the Effect on Economic Research Paper”, n.d. https://studentshare.org/macro-microeconomics/1590793-explain-and-illustrate-using-graphs-the-effect-on-economic-efficiency-of-government-prices-control-and-taxes-include-an-example-of-a-government-price-control.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Explain and illustrate, using graphs, the effect on economic efficiency of government prices control and taxes. include an example of a government price control

The Effect of Truth on the Protagonist Survival

Solzhenitsyn, a Nobel Prize winner, had been a rather obscure and unpublished 43-year-old teacher in a high school, situated in a Russian town, Ryazan, but suddenly in 1962, burst into the literary scene with his groundbreaking novel “One Day in the Life of Ivan Denisovich” which made him an overnight literary sensation. Besides being both compelling as well as authoritative, the truth of Stalin’s barbaric camps forms the mainstay of this novel. Solzhenitsyn’s simple but yet blatantly truthful messages about the prevalent Russian politics are elegantly woven into the story that erupted a plethora of protest from all quarters of society. Many of Solzhenitsyn stories were written in the labor and prison...
7 Pages(1750 words)Case Study

Accounting - The Meaning of Control Exerted By Controlling Entity Over Its Subsidiaries

IAS 27 defines ‘control’ as the ‘power to govern the financial and operating policies of an enterprise so as to obtain benefits from its activities.’(IAS Plus)i. Again ‘control’ under SIC 12 is treated to be exerted when the entity has decision making powers to obtain the majority of benefits of activities or business of Special Purpose Entity (SPE). Now consider the definition of control provided by Exposure Draft 10. Paragraph 11 of ED defines control as a situation when ‘a reporting entity controls another entity when the reporting entity has the power to direct the activities of that other entity to generate returns for reporting entity.’

A careful reading of the above...
9 Pages(2250 words)Assignment

The Relationship Between Citizen and Government

There are arguments between the advocates of universal and abstract principles and, the proponents of virtuous living. Onora ONeill traces this stalemate to faults in fundamental notions of reasoning about action. She recommends and builds a linked explanation of the principles that are fundamental for moving in the direction of just institutions and virtuous lives based on ethical thinking. (O’Neill, 1996)

The work of John Rawls mainly concentrates on the social institutions and virtues of the society namely, social justice, political liberty, and equality. In his work, Rawls’ has called justice as the “basic structure of the society” (Rawls, 1999, p. 7). Each individual enjoys a basic level of...
7 Pages(1750 words)Essay

Multiculturalism: Socio-economic Impacts on Modern States

This paper tends to argue that multicultural policies have promoted social segregation and economic insecurity in modern states. As the most relevant example, it will also evaluate how multicultural policies have evolved to be the most recent threat to the nationality and cohesion of Australia and the United Kingdom.

To begin with, many of the policies enacted on citizenship and immigration have brought about incessant controversy in Australia. In addition, the exceeding emphasis put on the multicultural policy has given rather unfavorable outcomes to both Australia and the UK. Policies that are intended to ensure equal representation and opportunities often create frustration and disappointment among certain interest g...
6 Pages(1500 words)Case Study

Using Law for Social Workers

The involvement of social work in society has always said to be highly contested. During recent years it has been seen that there is an unvarying attack on its ethics and values. Managerial controls have been increased a lot in social work and it has affected a lot at all levels of autonomy among social workers. This has bought some sort of crisis in the social work department. “The relationship between law and social work is complex.” (Brayne & carr 1). There are two facts to criticize this. The first one is these social workers are created by the government and are meant for public service and also to regulate various activities. A second obsession is these social workers are always very caring professionals. The...
7 Pages(1750 words)Assignment

Why Price of Laptop Computers Fell

The price at this equilibrium was P0 and the Number of Laptops was Q0.
As the demand fell due to the reasons discussed below, the demand curve shifted to left, D1. If the prices were to stay at P0, the quantity demanded, Qx would have been much lower than quantity supplied, Q0. In order to increase consumer demand, firms would have to reduce the laptop prices until it reaches the new equilibrium level, P1. At this point, the market is in equilibrium. The reduction in price increases the demand and the new quantity of laptops in the market would be Q1.
The most basic thing to consider in determining the price of a laptop is the technology used in it (Neidalos, 2010). Technology advances at a very rapid pace in today&rsquo...
6 Pages(1500 words)Case Study

Williamson's Influence on Economic Theory

he issues include inter-firm relations, trans-nationalization, regional culture, various production systems, regional culture, flows of knowledge through social networks, closely tied personal and business lives, embeddedness in surrounding society, external control and ownership, and contractual relations. Boundaries are demarcations of the firm’s structure that comprises an organization. All the above make demarcation of a firm difficult to ascertain. Boundaries are important in defining how and when things are done in the firm and establish rules and norms for inclusion or seclusion. It also determines parameters of organizational influence depending on the degree of the sector and its power over external influences. This...
6 Pages(1500 words)Essay

Using Information Technology

Even though several individuals criticize these sites, but there are millions who think that these sites have a positive influence on society (Are social networking sites good for our society? 2010). Among those who approve of these sites are the pregnant teen girls of the community who suggested a blog or a social networking tool that would be useful in communicating pregnancy-related information and providing support for group members.

This suggestion of becoming a part of a social networking site or blogging can prove extremely useful as it might not only be helpful for the group of pregnant teens being dealt at the moment but might also be a great help for girls worldwide undergoing similar dilemmas. This is because...
6 Pages(1500 words)Article

EU Law: Direct Effect, Indirect Effect and State Liability

The doctrine of direct effect is a principle that has been by the European Court of Justice and not is the EC Treaty. The development of the doctrine was done in a series of judgments. The doctrine is simple terms means that subject to satisfaction of certain conditions, rights and obligations which are created by EC law, may be relied upon by individuals and can be enforced in their national courts.

The doctrine developed in Case 26/62 Van Gend en Loos v. Nederlandse Administratie der Belastingen2, the Court found that the Treaty was more than an international agreement; it introduced a ‘new legal order’, which had its own institutions as well as legislative powers, thereby granting rights and obligation...

9 Pages(2250 words)Assignment

How Successfully Has the British Government in Running the British Economy over the Last Two Years

There were several issues confronting the British government since the time of the financial crisis, which had lead to the collapse of some of the largest banks in the nation. Government deficits had also increased considerably during that time and the situation of employment was worse than ever. The project tries to make an analysis of the steps taken by the British government in combating such serious issues. It also tries to gauge the extent to which the programs have been effective in mobilizing the British economy.

One of the major policies undertaken by the British Government in the last two years was fiscal decentralization. The government has taken steps to ensure that improvement is made in the country’s...
7 Pages(1750 words)Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic Explain and illustrate, using graphs, the effect on economic efficiency of government prices control and taxes. include an example of a government price control for FREE!

Contact Us