Government Intervention in Market Operations Essay

Government Intervention in Market operations - Essay ExampleIn addition, the firm may create differences in employee skills like the education take aim or training received. Products may be differentiated through the distribution of the products. This could occur through mesh shopping like the Amazon.com that is a modern online store and differentiates itself from the traditional stores. This type of market structure is naturalistic since there is product differentiation. Firms make independent decisions in regards to prices and toil costs (Bordo & Humpage, 2006). In addition, since there ar no major barriers to market entry or exit, people are free to enter or leave the market. Moreover, firms make independent decisions in regards to price and the output as headspring as the production costs.The U.S government has implemented the fiscal insurance that helps control the level of demand for different products as substantially as the economic demand pattern. It generally describ es the impacts on the aggregate economy and the overall spending and taxation. Taxes are the major source of revenue by the government. The government also provides subsidies and contracts to public works as well as the salaries of the employees. The taxation and spending are sources for driving demand and increase the growth of the economy. Fiscal policy entails the government making a decision about the goods and services it buys, the collection of taxes and distribution of transfer payments. The of import goal of the fiscal policy is to observe and maintain a high economic growth as well as ensure there is full employment (Fatum & Hutchison, 2003). Moreover, it helps the U.S government make decisions on whether it willing spend more or less than it gains. There are two types of Fiscal policy, the expansionary, and the contractionary policy. The main intention of the expansionary policy is to create growth and stimulate the economy. In addition, the government either reduces tax es or spends more.