Mention three important economic functions of a government with suitable example.
Answer (1)
22nd Jan, 2020
Hi,
There are five economic functions of the government:
- Providing the legal structure.
- Maintaining competition.
- Redistributing of income.
- Reallocating of resources. negative externalities. positive externalities. public goods.
- Promoting stability.
Economists, however, identify six major functions of governments 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.
Hope this helps.
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