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The economic role of government can best be defined by a classification of its economic policy aims. Broadly speaking the political choices made by electorates
The economic role of government can best be defined by a classification of its economic policy aims. Broadly speaking the political choices made by electorates in some democracies influence governments to perform four functions. The first is production of services which private firms are either unwilling to produce or for some reason are not allowed to produce (or at least not exclusively). This public provision may be to provide immediate benefits (e.g. defence, law and order) or deferred benefits (e.g. investment in roads). The study of the causes of government growth is a hot subject because it tests the skills of economists in a model building and econometricians and statisticians who devise means for empirical testing. Their results only influence business decisions in an indirect way, notably in the presentation of background information for the speeches of business executives who wish to make pronouncements about public policy issues, particularly on the consequences of government growth. a) Conceptualizing a history of your own firm or organization(any type of organization but let us say Mary Kay Inc.), in what way will you approach the study of growth in government b) Transfer payments do not form a direct link between government and industry but major efforts by government to alter income distribution have considerable influence on the structure of household purchases and therefore on the pattern of demand for industrial products, what other economic role of government can be realized? c) Understanding the interaction between government policy measures and industries affected by them requires some kind of information. Elaborate on the information required.
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