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
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
