A general orientation toward markets does not rule out some important roles for government in aiding a country's economic growth. List and discuss at least three significant contributions a government can make toward a country's economic growth

Government often plays a role in setting up and funding the education system, especially at the primary and secondary level. Government regulations and taxes can favor savings and investment or discourage them. Governments can administer laws in a fair and impartial way, or they can offer favoritism and patronage that encourages business to try to make money by lobbying government ministers, rather than by providing goods and services that consumers desire. Governments can encourage international trade or surrender to protectionism. Governments can play a key role in overseeing the safety of banks and the financial system, in enforcing contracts, and in supporting infrastructure projects like roads and electricity generators. Governments can support scientific research and technical training that helps to create and spread new technologies. Governments can protect the ability of inventors to profit from their inventions. Governments also have a role to play in preventing the economy from sinking deep into recession or inflation, either of which can create a situation where individuals and firms are under such great stress from dismal macroeconomic conditions that they have little chance to plan the investments and discoveries that lead to economic growth.

Economics

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Which of the following is true of pure monopoly?

a. Monopoly expands the options available to consumers. b. Monopoly results in allocative inefficiency. c. Profits and losses induce firms to enter and exit from industries. d. Monopoly works well when governments regulate prices.

Economics

The economic theory of labor markets suggests that wages are determined by labor supply and labor demand

a. True b. False Indicate whether the statement is true or false

Economics