Economic Objectives

Quick revise

Economic objectives are the targets that are set by individuals / firms / governments to achieve

All bodies pursue maximising objectives which aim to get the most out of what they do

Firms are regarded as profit maximisers who attempt to maximise shareholder value and generate funds to support growth

  • Individuals
  • Firms
  • Governments
Economic Objectives of Individuals

Different individuals will have differing objectives

  • Employees will seek high wages
  • Shareholders desire maximum profits and dividends
  • Employers want maximum profits and minimum costs
Economic Objectives of Firms

Firms are regarded as profit maximisers who attempt to maximise shareholder value and generate funds to support growth. Other key objectives include:

  • Growth by increasing sales / market share
  • Survival

This video looks at a firms objectives when pricing and setting output profit revenue and sales maximisation.

Economic Objectives of Governments

The governments major objectives are:

  • Full employment or low unemployment
  • Price stability
  • High and sustainable economic growth
  • Balance of payments in equilibrium

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