microeconomic policy

microeconomic policy

the setting of specific objectives by the government for particular markets or industries and the use of control instruments to achieve those objectives. Microeconomic objectives focus upon the efficiency with which resources are allocated and ways in which impediments to efficient resource allocation such as, for example, MONOPOLY distortions or the slow adjustment of industry capacity to market demand, might be overcome through COMPETITION POLICY and INDUSTRIAL POLICY. See REGIONAL POLICY, ECONOMIC POLICY, MACROECONOMIC POLICY.