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n d m ic s
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Econ
s e s sme
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nt due
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GOVERN Economics group
t h ma assignment
18
MENT Group 5 :

INTERVE
Ashfaq
Shawn
Shaha

NTION
Izkaan
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 To Promote
Equity
Regulatory actions taken by Need of
a government in order to
affect or interfere with Governmen
decisions made by individuals,
groups, or organizations
t
regarding social and economic
matters.
intervention
The government has the
responsibility to ensure that
all its citizens live above the
poverty line and that
everyone has access to
similar programs. It does
this by transferring money
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from the rich to the poor.

 • Externalities- They are a loss or gain in the
welfare of one party resulting from the
actions of another party without there
being no compensation for the losing party.
• Non-competitive behavior- these include
cartels, oligopolies and monopolistic
Reasons for
competition.
• Imperfect information -Ignorance or government
uncertainty about the prices being charged
for goods and services or the utility intervention in
preferences of buyers, or uncertainty about
the outcome of events.
• Due to equity issues – where there is no
the market
disparity between resource allocation
• Factor immobility - fails to provide an
efficient allocation of resources because of
the geographical and occupational
immobility's, it occurs when it is difficult
for factors of production 
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• Maximizing social welfare like regulating

negative externalities-pollution and breaking
up monopoly power
 • Taxation
• Subsidies
• Buffer stocks
• Pollution Permits
• State provision
• Regulation
• Extending property
rights
• Prevent anti-
competitive practices Methods of
• Introduce anti-
competitive legislation
government
M
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intervention

4
 5
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 Subsidies will shift the
supply curve to the
right giving more
supply

02
Subsidies
A subsidy is a given amount by the government to
encourage production and consumption that help the
environment and benefit the country. Normally
governments give firms a subsidy so the firm can produce
and supply products or services that are more safer for the
country and if the firm started an initiative or project that
prevents causes such as pollution, for example ,which will
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encourage society to do the same .

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 Buffer stock
Target prices help prevent
excess prices for consumers
and help reduce food
inflation. This might be
important for households
living in poverty, who may
struggle to pay high prices
during years of shortage.
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 YOU!
THANK
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