The Impact of Government Intervention
The Desired Outcomes Of Government Intervention
Prices | Profit | Efficiency |
Affordable & stable prices |
Permitting enough to keep firms in the industry (normal profit) but limiting how much they make so that household income is protected |
Reducing wastage of valuable resources & one of the best ways to achieve this is by developing rigorous competition |
Quality | Choice | |
Ensuring products are fit for purpose & contribute to a better standard of living |
Wider choice improves the standard of living & also helps to improve product quality. More choice also generates more economic activity in an economy & increases the gross domestic product (GDP) |