ABSTRACT
This chapter takes a different vantage point by looking at current government policies through the lens of microeconomic and macroeconomic theories. Microeconomics looks at how human incentives and disincentives work in an economic setting. The chapter focuses at five economic policy areas from a microeconomic perspective namely size-of-sectors policy, regulatory policy, information symmetry policy, monopoly restrictions and property rights policy and assesses where the United States (US) tends to focus on balance. Microeconomics does not cover all areas of economic activity, and the assumptions of perfect and high-performing markets are often enhanced with government intervention. Macroeconomics is the science that looks at how whole national economies work. Some macroeconomic policies are looked at on a national level. Areas of interest in macroeconomics include fiscal policy, revenue policy, expenditure policy, debt policy, monetary policy, recessionary policy, trade policy and capital flow policy.
