describe the role of government in an economy
Answers
Explanation:
Economists, however, identify six major functions of governments in market economies. Governments provide the legal and social framework, maintain competition, provide public goods and services, redistribute income, correct for externalities, and stabilize the economy.
Explanation:
the economic functions of a government include:
Protection of private property and maintaining law and order / national defence.
Raising taxes.
Providing public services not provided in a free market (e.g. health care, education, street lighting)
Limit market failure through the regulation of markets, e.g. regulations on environment/labour markets/monopoly.
Macroeconomic management, e.g. use of fiscal and monetary policy to control business cycle – recession and inflation.
Reducing inequality/poverty.