The State Has Always Played a Major Role in Managing

question 64

Essay

The state has always played a major role in managing the Japanese economy as both a patron and a protector of domestic industry. First, citing specific examples, explain the kinds of policies the state has taken in this regard. Next, explain how this traditional role of the state is being challenged by globalization as well as the current on-going economic recession.

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Definitions:

Marginal Utility

This concept refers to the additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service.

Utility Maximization

The process by which individuals or consumers adjust their consumption of goods and services to achieve the highest level of utility or satisfaction.

Marginal-Utility Schedules

Charts or tables that represent the additional satisfaction or utility a consumer gains from consuming an additional unit of a good or service.

Utility Maximization

A principle in economics that suggests individuals and firms seek to allocate their resources in a way that maximizes their satisfaction or utility.