State intervention in the economy takes several forms, two of which are regulation and defense of competition. These interventions must have a justification and must be carried out with prudence so as not to generate economic inefficiencies, such as, for example, the misallocation of resources.
To understand these forms of State intervention in the economy and the relationship between them, it is necessary, first of all, to understand the very logic of the relationship between State and market. Next, it is necessary to understand the logic of economic regulation and competition defense. To achieve this, understanding the basic concepts of regulation and competition defense are important. No less important is to evaluate some cases in which there was State intervention through regulation of economic activity or defense of competition.
In general, State intervention in the economy is justified when there are market failures. Therefore, it is necessary to understand them, which presupposes the analysis of the market structures themselves.
Finally, the two forms of intervention can conflict. Regulation can encourage competition, but it can also have negative impacts on it, reducing well-being. This justifies a joint analysis of the two forms of state intervention in the economy.
Discuss theories and instruments that can be applied to the functioning of the State, especially in the areas of regulation and defense of competition, allowing the student to develop the ability to critically examine State interventions in the economy, focusing on the possibility of increasing well-being .
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