Economics

Economics
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Economics
How the Government Encourages Production
The government may encourage production by making the factors of production cheaper and more accessible in the marketplace. It can do this by formulating friendly trade policies, giving incentives, offering grants and loans and lowering interest rates (Burda & Wyplosz, 2013). Simplifying regulations guiding land ownership may enable producers to acquire land for production easily. Besides, grants and loan programs given directly to producers are one way to promote production. Offering tax incentives to producers, lowers production costs, thus motivating them to produce more. Finally, reducing interest rates on loans encourage access to capital, which is a vital factor of production.
Steps the Government Can take to Promote Entrepreneurship and market participation
The government can take several steps to promote entrepreneurship and consumer market participation. Such measures may entail increasing scope for capital by availing loans and grants to startup businesses, promoting cooperation between the private sector and researchers to improve public-private partnerships, developing proper IT tools for entrepreneurs and reducing regulatory burdens exerted on entrepreneurs (Burda & Wyplosz, 2013). The government can reduce regulatory burdens on entrepreneurs by granting them, permits quickly and making use of digital technology to process regulatory requirements. Also, t…