Political Science Essay Example | Topics and Well Written Essays - 500 words - 17

Political Science - Essay ExampleThe state has ingrained power of regulating prices through price floor and ceilings to protect the firms and the consumers (Tanzi 92-7).The government plays a central role in regulating the take and supply of goods go by firms in their different market structure with the focus of ensuring efficient allocation of resources. Taking the case of monopoly firms, the government gives them incentives through different methods to retain their military position quo. However, the government still uses pricing policy to influence the monopoly firms behavior in terms of output to the consumers. The state set up diverse institutions that oversee the various economic activities in the untaught so that working of the economy is consistent with the manpower and resources potential available. Through modify partnership with private sector, the state take in charge research and development on various socio-economic variables and the resultant findings are used to establish feasible economic policies that boosts the efficiency of the economy. This includes partnering to develop infrastructure which is an incentive to improved performance of the market and economy at large.The state is mandated to form bilateral and multilateral trade relations with other countries so that there is labor mobility, supercede of technology and other input factors. This promotes the performance of the economy through increased input factor availability and expanded market for the final products. It is important that the country institute laws that protect local firms from stiff competition of the established multinationals by giving them incentives likes tax holiday, subsidies and infrastructure as this will boost the level of production and performance of the economy. The state needs to include other public welfare issues as part of the market operation processes. In regard to the emerging and current debate on environmental care and