Question

The government has two main roles to play in the economy. What are those roles? What real-world examples do you have of those roles? What agancies of the government carry out those roles?

Answer 1

Out of the numerous functions that the government has to perform its two major role are regulating the economy and redistribution of income. Regulation of the economy is needed if the private sector is over exploiting the resources or is damaging the environment. Regulation is also necessary in case private sector fails to provide basic utility services such as education health and infrastructure.

Some real world examples of these roles include the Government of the United States and the Government of China. Though the two nations are distance apart in their nature of political structure, government plays a key role in these Nations. Especially in the field of education health and defence.

There are basically three level of government including the Federal government at the top state government that work in the second level and then the local governments that include municipality and Municipal Corporation responsible for governing local areas.