Question

Please answer the following questions, accordingly:

1. What must be the responsibility of government in an economy?

2. What are the advantages?

3. What are the the disadvantages?

4. Overall, why is it imperative in Real-World terms?

Answer 1

1.Role of Government in Economy:

Governments provide the legal and social framework, maintain competition, provide goods and services to the public, income redistribution, correct for externalities, and balance the economy. ... Over time, as our society and economy have changed, government activities within each of these functions have enlarged.

2.Advantages:

There are many advantages that includes:

1. No social injustice.
2. Secured public goods and srevices.
3. Rights and responsibilities are clearly defined.
4. Provide health care.
5. Employment opportunities are provided.
6. Educational benefits.

3. Disadvantages:

Disadvantages may include:

1. Government ownership may lead to less alternatives.
2. Influenced by higher authorities.
3. Time lags.
4. Poor information.
5. Lack of incentives.

4. Yes, we can say that it is very important for the Government to intervene in the Economy because Government provides various facilities for the people below the poverty level. They can get benefitted by the acts of the government.