ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -The most obvious way the government is involved in the U.S. economy is providing public goods and services like education, military protection, national parks and federal highways. These goods and services are paid for with tax revenue, which introduces a second role of government – redistribution of income.
Detailed explanation-2: -Answer and Explanation: The reason the government provides public goods is to resolve the issue of what economists call ‘’externalities. ‘’ An externality is a cost or benefit that results from the nature of a service or product incurred or received by the public and third parties.
Detailed explanation-3: -Economists generally agree that pure public goods are properly provided by government and paid for by taxes.
Detailed explanation-4: -3.2 Government as a Consumer: In order to ensure that each person can do his/her job, Government has to buy certain products and services from the private sector.