1. Preserving Freedoms
1.1. Special Interest
1.1.1. OSHA
1.2. Public Interest
1.3. Public Disclosure Laws
1.3.1. Companies must inform people about whats in there product my properly labeling each sold product.
1.4. Public Policy
2. Providing a Safety Net
2.1. Poverty Threshold
2.1.1. The minimum level of income deemed adequate in a given country. Ex- Min Wage $7.25
2.2. welfare
2.3. cash transfers
2.3.1. Temporary Assistance for Needy Families (TANF). Social Security. Unemployment Insurance. Worker's Compensation
2.4. in-kind benefits
2.5. 1.Cash Transfers. 2.In-kind Benefits. 3.Medical Benefits. 4.Education.
2.5.1. 1.Social Security. 2.Food Stamps. 3.Medicaid. 4.Free education.
3. Promoting Growth & Stability
4. Providing public goods
4.1. market failure
4.1.1. collective goods and services are not provided
4.2. public goods
4.2.1. non-rivalry and non-excludability
4.2.2. private goods; public goods
4.3. public vs. private sector
4.3.1. Public is at everyone's usage, but private you have to pay to use. Ex- cable tv vs. street lights
4.4. free rider
4.4.1. Someone who doesnt pay for a private good, but reaps the benefits. Ex- Hitch-hiker
4.5. externality
4.5.1. Someone who reaps the benefit of a good, but doesnt pay. Ex- Secondhand smoke.