2. Public Administration FCES
Why Should the Gov't intervene( )?
Economic Objectives Social Objectives
How Should the Gov’t intervene?
Economic Policy Regulating Businesses
Gov’t Expenditure Interest Rate Consumer’s Merger’s &
Legislation &Competition
Gov’t Revenue Employment
Legislations
Helping Businesses
Helping Helping Small Business
Experters
Helping to locate
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3. Public Administration FCES
Here is 20 Questions including Chapter 1 :
1.Why should the gov’t intervene in businesses
activities?
To achieve economic objectives such as : reducing budget
deficit and achieve social objectives such as: reducing the
gap between the rich and the poor.
2.How should the gov’t intervene in businesses
activities?
By three proud tools
1.Economic policy :Gov’t expenditure
, gov’t revenue , gov’t interest rate .
2.Helping Business: Helping experters , helping to
locate , helping small business.
3.Regulating Businesses :Consumer’s Legislations
, Employment legislations ,
mergers and competition .
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4. Public Administration FCES
3.why should the gov’t use expenditure as an
economic policy?
To control the level of economic activities.
.
.
4.How should the gov’t use expenditure as an
economic policy?
If the economic activities is slow the gov’t will spend more
on structure including basic roots – pure water-electricity,
on the other hand if there is inflation , the gov’t
expenditure will be much less.
-–
.
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5. Public Administration FCES
5.Why should the gov’t use its revenue in economic
policy?
To control the business activities by encouraging favorable
activities such as : bakery , and discouraging unfavorable
activities such as : cigarettes
6.How should the gov’t use its revenue in economic
policy?
The gov’t will impose more taxes on unfavorable activities
such as: cigarettes or smoking , on the other hand the gov’t
will exempt or receive less taxes on favorable activites such
as necessary commodities.
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6. Public Administration FCES
7.Why should the gov’t use the interest rate on
deposits in economic policy?
The interest rate will control the level of investment in the
society .
.
8.How should the gov’t use the interest rate on
deposits in economic policy?
If the gov’t wants to encourage more investments , it will
set lower interest rate on deposits (This will make
depositors withdraw their cash from banks and invest it in
businesses) and vice versa.
.
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9.Why should the gov’t help exporters?
1. More hard currency will flow into Egypt.
2. The balance of payment will realize (achieve) surplus.
3. The gross national product will increase.
4. More employment opportunity.
.
.
.
.
10. How should the gov’t help exporters?
1. Provide export grants.
2. Reduce export duties.
3. Establish export development authority.
4. Simplify producer.
.
.
.
.
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8. Public Administration FCES
11. Why should the gov’t intervene to the
businesses?
1. Pull out businesses from over populated and over polluted
areas.
2. Develop underdeveloped areas.
3. Provide more employment opportunities in poor areas.
.
.
.
12. How should the gov’t intervene to the business?
1. The gov’t will provide the land and public utilities in the
lower prices.
2. Provide regional grants.
3. The formation procedures are simple.
4. Tax exemption for number of years.
.
.
.
.
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9. Public Administration FCES
13. Why should the gov’t help small businesses?
1. More hard currency will flow into Egypt.
2. The balance of payment will realize (achieve) surplus.
3. The gross national product will increase.
4. More employment opportunity.
( The same answer of Question 9 )
.
.
.
.
14.How should the gov’t help small businesses?
1. The gov’t will provide loans at a lower interest rate.
2. Provide technical assistants.
3. Simple formation procedure.
4. Tax exemption.
.
.
.
.
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10. Public Administration FCES
15. Why should the gov’t issue (in act) consumer’s
legislation?
To protect consumers from unfair practices & fraud by
some producers.
16.How should the gov’t in act consumer’s
legislation?
By issuing legislations such as weights and measuring
consumer’s safety act and credit act.
17. Why should the gov’t in act employment
legislation?
To protect the employees from employers.
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11. Public Administration FCES
18. How should the gov’t in act employment
legislations?
The gov’t issues legislations such as minimum and
maximum wages , and employees safety.
19.Why should the gov’t mergers & competition ?
To encourage competition and fight monopoly ,
competition will result such as lower prices , higher quality ,
more business opportunity and employment opportunities.
20. How should the gov’t merger and competition?
If the business that have a merger share they will control
the market and leads to a monopoly , the gov’t will not
approve the merger.
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