Question

​what are the six economic functions of the United States government and explain ​each.

Answer 1

The six economic functions of US government is explained as follows

1) Government provide legal and social framework:

The government make laws regarding the formation of a company. The government allow and restricts the entry of company based on their activities

2) Maintain competition:

The US government help in maintaining healthy competition among companies.It provide support to small companies and thus provide the base for such companies to compete with large companies.This help the consumers to get quality products at reasonable price

3) Promote economic stability and growth:

The US government uses both fiscal and monetary policy to protect the economy and promote long term economic growth.Monetary policy also provide protection promoting maximum employment , stable price and moderate long term interest rate

4)Redistribute Income:

Government restrict the holding of income and wealth in few hands and thus help in the distribution of income to all the people and make the Economic benefit available to all its citizens

5) Provide goods and servic The main economic function of a company is the provision of goods and services to the consumers. Government make it sure that quality goods and services are provided to the people at reasonable prices

6) Government regulates and control the economy through numerous laws affecting economic activity:

The US government make laws and regulations and control the economy through numerous laws affecting economic activity.They make it sure that the benefit of economic activity is provided from the grass root level

These are the six economic functions of US government