- How much a government intervenes in an economy depends on the effectiveness and efficiency of government policies and the level and condition of the prevalent market failure.
- The government plays many roles in an economy, such as an owner of industries and state owned monopolies, a producer, a regulator and tax collector.
- A government can run a natural monopoly for the production of essential products which private sector firms may not produce.
- Governments sometimes work with the private sector firms and finance their projects.
- Governments employ workers for government jobs as this can help the government achieve its aims.
- Governments promote and negotiate international trade deals with governments of other countries.
© 2020 Knowledge Unbound
Designed By Shikhar Beriwal |