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BCM105 Economics For Business Module

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  • Course Code: BCM105
  • University: Amity University
  • Country: India

Question:

Purpose of the Assessment To assess understanding of key principles and theories in economics and the ability of the students to apply these principles and theories to business and management scenarios.

Assessment Task

For this assessment you are required to discuss:

a) The advantages of Government intervention in the economy when markets fail.

b) The drawbacks of Government intervention when markets are assumed to be functioning normally.

The assessment aims to demonstrate that the students understand the importance of conditionality, that is, the dependence of advantages and disadvantages on the assumption of market failure.Economic interventionism (sometimes called state interventionism) is an economic policy perspective favouring government intervention in the market process to correct the market failures and promote the general welfare of the people. An economic intervention is an action taken by a government or international institution in a market economy in an effort to impact the economy beyond the basic regulation of fraud and enforcement of contracts and provision of public goods. Economic intervention can be aimed at a variety of political or economic objectives, such as promoting economic growth, increasing employment, raising wages, raising or reducing prices, promoting income equality, managing the money supply and interest rates, increasing profits and so on. Students are expected to understand the drawbacks of intervention when the government will go against the requirements of the market such as price-fixing.

 
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