ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Providing private goods and services
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Redistributing income through transfer payments
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Protecting property Rights
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How much its governments improves fiscal policy
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Detailed explanation-1: -The government (1) provides the legal and social framework within which the economy operates, (2) maintains competition in the marketplace, (3) provides public goods and services, (4) redistributes income, (5) cor-rects for externalities, and (6) takes certain actions to stabilize the economy.
Detailed explanation-2: -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-3: -Post offices and government owned museums are two examples of private goods or services provided by the government.
Detailed explanation-4: -The government provides certain public goods and services which the private sector fails to provide because there exists no market for them. Example: National Defence, Public Parks and National Highways etc. The reason of government providing such goods is the nature of public goods.