USA HISTORY

Detailed explanation-1: -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.

Detailed explanation-2: -Government intervention in the economy is inevitable as certain roles and responsibilities cannot be assumed by the private sector. Governments are meant to guide and direct the pace of economic activity in the country. It also needs to ensure stable growth, high employment, and price stability.

Detailed explanation-3: -In the early stages of sustained growth, government has often provided the incentives for entrepreneurship to take hold. In some economies the development of transportation, power, and other utilities has been carried out by the government. In others the government has offered financial inducements and subsidies.

Detailed explanation-4: -The quantity, quality, structure, distribution, and movement of a population can help or hinder the rate of economic development. A developed country with low population density and a low percentage of employable people needs an increase in population in order to keep up with economic development.