The Assignment on Introduction To Economics

Running head: INTRODUCTION TO ECONOMICS
Introduction to economics
Name of the student
Name of the university
Student ID
Author note

1
INTRODUCTION TO ECONOMICS
Table of Contents
Introduction......................................................................................................................................2
Government's role in the economy..................................................................................................3
Direct services.................................................................................................................................3
Growth and stabilization..................................................................................................................3
Regulation and control.....................................................................................................................4
Assistance directly...........................................................................................................................4
Role of business in the economy.....................................................................................................5
Conclusion.......................................................................................................................................6
Reference.........................................................................................................................................6

2
INTRODUCTION TO ECONOMICS
Introduction
In every economic field, country’s entrepreneurs and businessman try to accumulate
natural capitals, labour and technology to research, produce and to deliver the demanded goods
and services. But the method of utilising these elements reflects a country’s political principles
and its culture. Discussing about the United States, always noted as a “capitalist” economy
(Fuchs, 2019). This term is bagged to the US by the 19th century popular german economist
“Karl Marx”. He described such type of system, where a minor group of head who control large
amounts of money or corpus or capital, they usually make a most economic decisions. The
Marks also juxtaposed a “socialist” economies (Uysal, 2017) instead of capitalist economies. The
socialist economic system confer more power to the nation’s politics. Capitalist economies
confer power to the wealthy business people whre the main motive is to maximize profits. In
other perspective socialist economical theory is more likely a fiuture control by the government
where the main motive is more equal distribution of resources instead of profits. Though thses
two theories are oversimplified and having the elements of truth, but these theory are less
relevent today. Now the pure capitalism theory defined by Marx has been disaapeared. It can be
seen that the government of “United States” and many other countries have mediated in their
economies, restrict the power and addressed more on the socialist issues over the private
commercial interest. Consequently it is better to describe the US economy as “mixed economy”
where government and private enterprise both are playing an important role to the economy.

3
INTRODUCTION TO ECONOMICS
Government's role in the economy
Making a meaningful decisions by the consumers and producers that would affect the
economy, then the main four government activities may effects on the US economy (Zhu &
Yoshikawa, 2016).
Direct services
In the context of delevering direct services every level of government does so. For
instance the “postal system” is a federal system that helping to the entire country, on the
contrary, the maintenance and construction of the highways is main responsibility of individual
state governments. The public education system are paid by state, country or city governments.
Growth and stabilization
Federal reserve system ususally deals as a controlling mechanism of extreme booms and
bust in the economy, depression and inflation by regulating tax system, monetary supply in the
economy and the credit use. If the government spent more public spending itself then it can also
effect the economy.
Regulation and control
Discussing on the regulation and control, it can be suggested that the government
normalizes and controls all private entity in many techniques to assure that the business provides
the best concern of service to the people as a whole. It can be seen that, in the case of monopoly
sector the intervention of the government’s regulation is important in order to control the losing
interest of the people. Monoloply market such as electric sector, telephone services and railroads,
public policy allows these sectors to make reasonable profit but simulteneouly, restricts them to

4
INTRODUCTION TO ECONOMICS
raise unfair price as publics are bound to depend on their service. In the other sectors, ensuring
the fair competition governments sets several guidelines except direct control.
In the year 1970’s and 1980’s, USA has faced several issues by the regulations of the
government in economy. Therefore, government has insisted with the free enterprise, rise the
“cost of doing business” thus reflected the inflation in the economy (Zhu & Yoshikawa, 2016).
Assistance directly
Various types of help served by the government refered to business and the individuals.
For instance, permit of tariffs on definite products to keep free from foreign competition,
imported goods are sometime taxed or restricted by the quantity, thus US domestic products can
better strive with the foreign goods. Manytimes government subsidize into the goods to control
the price mechanism.
Role of business in the economy
Referring to the role of business in the corner of economy, business can employ people
within the economy. Simple concept, without earnings, no one can purchase their cost of living
in the economy. So the business create and increase the purchasing power of the people in the
concerned economy. Business can offer a selling or exchange platform in the economy from
where people can make money. Business also drives the economy through the investment.
In the US economy small business conclude a major boost. Small business have
generated about 50 percent of the gross domestic product (GDP) in the US economy
(Geissdoerfer et al, 2018).

5
INTRODUCTION TO ECONOMICS
In a recent days, coercive economic measures have become a central tool of foreign
policy and have been used to address an array of threats to US. National security. Coercion, it is
termed as the political economy of monetary power. This are four type as foreign aid, monetary
power, financial power and trade (VanderVelde, 2015).
Volunteerism is often professed as contributions of time or labor but it can also referred
as contributions of money or goods, and each forms varies widely along with several dimensions.
The activity of volunteer in USA has became a primary topic ofpublic interest, because of the
convergence of three parameter. First- government is encouraging volunteer work, second-
women, the source of volunteerism in USA in order to increase the work force and third-
increasing number in retitring people to use their talen, experience in the economy (Vetitnev,
Kruglova & Bobina, 2015).
Policy makers have two choice to conversion the production and consumption behaviors
in society. They can use “economic incentives” or policies which is based on market could
change the producers and consumers performance. This are anticipated to control pollution not
subject to regulation.
Conclusion
This report conclude that the main objective of two main institutions that is government
and the business entity is to serve people differently in the economy. They have adoped differtent
mechanism in order to serve economy. In case government, main motive is to provide economic
wealfare in thye economy whereas business acts as profit motive.

6
INTRODUCTION TO ECONOMICS
Reference
Fuchs, C. (2019). Karl Marx in the age of big data capitalism.
Uysal, G. (2017). Socialist Market Economy Principles as a Neo-Marxist Policy. China-USA
Business Review, 16(5).
Zhu, H., & Yoshikawa, T. (2016). Contingent value of director identification: The role of
government directors in monitoring and resource provision in an emerging economy. Strategic
Management Journal, 37(8), 1787-1807.
VanderVelde, L. (2015). The Last Legally Beaten Servant in America: From Compulsion to
Coercion in the American Workplace. Seattle UL Rev., 39, 727.
Vetitnev, A., Kruglova, M., & Bobina, N. (2015). The economic dimension of volunteerism as a
trend of university research. Procedia-Social and Behavioral Sciences, 214, 748-757.
Geissdoerfer, M., Morioka, S. N., de Carvalho, M. M., & Evans, S. (2018). Business models and
supply chains for the circular economy. Journal of Cleaner Production, 190, 712-721.