Question

E Give some activities of the government.

Answer 1

ANSWER

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Some activities of the government are as follows :-

1.The government supplies different public goods (e.g. parks, roads, bridges, etc.

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2.The government incurs consumption expenditure for purchasing various consumption goods e.g purchase of shoes, clothes for defence.

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3.The government makes investment expenditure for helping the process of capital formation in the economy.

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4.The government regulates the total supply of money in an economy.

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5.The government provides health and education facilities for the benefit of common people.

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6.The government also frames different economic policies (e.g. tax policy, trade policy , industrial policy etc.)

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