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1 ) Name and briefly describe
one of the three major functions of an economic policy ( function of state
intervention in the economy )
2) Select one country case
study and characterize briefly it's economic system . Include what type of
system it is, what type of fiscal policy it pursues, what type of central
and monetary policy it had, basic type of taxation and unique elements to
that country.
3) How can you define socio-
economic system?
4) Characterize briefly the
concept of Kondratieff waves ?
5) What are the potential
benefits of a ' shock therapy' approach towards economic transition?
6) Definition of welfare state
.
7) Which type of economic
system is my least preferred one and why ?
To
Answer Economic Questions: Indian Eonomic System
1.
Economic policy
Economic policy refers to
the actions that governments play in the economy. Governments’ economic
policies depend on the desired outcome of the economic tools used. Generally,
the economic policies include the role of the government in regulating the money
supply, like government spending, interest rates, taxation, and subsidies. The
government interventions are aimed at maximizing social welfare. Taxation is
one of the most economical policy tools used by the government. Taxation
influence the amount of money circulating in the economy. When the money supply
in the economy is high, the government increases taxes so that the cost of
borrowing money is high; this will mean that investors will find the cost of investment
high, and the money supply in the economy will be reduced.
2.
Indian Economic system
India has an economic
system considered as a mixed economy, which is a combination of a free-market
economy and government intervention. In India today, the economy as private and
the public sectors co-exist, and as well the government leverages international
trade. It has both elements of capitalism and socialism. India has a mixed
economy had borrowed a lot from the united states’ fiscal policy instruments. Government
spending and taxes are the common tools used by the Indian government. India
has a structured tax system, and the importance of taxes is defined by two
attributes - progressive and proportional. It is progressive in that the tax is
levied at increasing rates to increase brackets of income and revenue. The
Central Bank of India has a reserve requirement that influences the money
supply in the economy and the level of interest rates. Progressive and
proportional taxation means that the percentage of an income of an individual
or household pays increases as income increases. Those people with higher
income pay more taxes and also have a higher rate of taxes.
3.
Socio-economic system
The socio-economic system
is the way social and economic factors within an economy influence one another
in households and in the communities. Some of these socio-economic factors
include the level of education and the social setting of the community, like
heritage.
4.
The concept of Kondratieff waves
The concept of the Kondratieff Wave was coined by Nikolai Kondratieff,...
