Econ: Economic Functions of Government

unclesamThe general purpose and function of government is to protect individual rights, to promote a stable legal environment for economic activity, and to promote policies that support the well-being of citizens. Government tries to accomplish its purpose in four ways: providing public goods, redistributing income, regulating economic activity, and ensuring economic stability. Public goods are a special type of goods and services that government supplies to all citizens. Government can promote the well being of citizens by redistributing income with social insurance and public assistance programs. Other functions of government involve regulating economic activity. Many people criticize government involvement in the economy and think that market solutions are better than government involvement.



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