List five major economic activities of government, and give an example of each.
What will be an ideal response?
| 1. | Government as referee. Example: enforcing contracts or supervising truth-in-lending laws. |
| 2. | Regulating business. Example: antitrust laws, environmental laws. |
| 3. | Expenditures. Example: government pensions, national defense. |
| 4. | Taxes. Example: income, sales, property taxes. |
| 5. | Government as redistributor. Example: poverty programs, Social Security. |
Economics
You might also like to view...
If the AD curve shifts rightward while the AS curve and potential GDP don't change, then
A) there will be no change in real GDP, so the economy is at the trough of the cycle. B) the expansion phase of the business cycle occurs. C) there will be no change in real GDP, so the economy is at the peak of the cycle. D) the economy will move from a peak into recession. E) real GDP does not change.
Economics
If a company could spend $3 per bicycle on a safety device that would prevent $2,000 worth of harm for every 1,000 bicycles sold, spending the $3 would be a cost-justified precaution
Indicate whether the statement is true or false
Economics