Government intervention

Government intervention

Bachelor of Business Studies (BBS) — First Year

Subject: Microeconomics for Business (MGT 207)

Unit 2: Market Equilibrium and Efficiency

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of government intervention.
• Explain the economic reasoning and use appropriate diagrams or relationships in business analysis.

Curriculum Scope

• Effects of taxes, subsidies and price controls on equilibrium

Detailed Microsyllabus

1. Taxes and subsidies

   1. Distinguish the price paid by buyers from the amount received by sellers.
   2. Changes in equilibrium quantity and effective prices.
   3. Role of demand and supply responsiveness in incidence.

2. Price controls

   1. Binding and nonbinding price ceilings and floors.
   2. Shortages or surpluses under binding controls.
   3. Analyze intervention through clearly labeled demand–supply diagrams.

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Curriculum reference: Tribhuvan University, Faculty of Management, BBS curriculum with first-year syllabus, PDF pages 17-19.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit lecture hours apply to the whole unit; no separate topic hours or marks are assigned here. The programme subject list identifies this course as MGT 207; the detailed subject heading in the source prints MGT 203.