Government and the Economy

1. How should government address externalities and public goods

1.1. The federal and state governments implement a variety of policies

1.2. Provide public goods that are deemed necessary

1.3. http://www.econlib.org/library/Topics/College/marketfailures.html

1.4. Some people say that the government can't control externalities while others want laws put in place to control bad externalities. It is hard to decide what should be a public good but the government should what is best for the people.

2. What does government do to promote economic well-being

2.1. Spends more money

2.2. Redistributes income

2.3. http://www.rudi.net/node/20861

2.4. The government gives out loans and food stamps for those in need. It tries to make sure everyone has health insurance for the safety of our country. There are ACTS to help the poor and the sick.

3. How does the government protect property rights?

3.1. Court System

3.2. Police Forces

3.3. Patent and Trademark Office

3.4. Eminent Domain

3.5. http://fee.org/freeman/detail/private-property-and-government-under-the-constitution

3.6. The Constitution protects many property rights. There is a legal deed that goes along with property. If you break that deed or someone else breaks it there will be consequences under the law.

4. What regulatory roles does the government play in our economy?

4.1. Maintaining Competition

4.2. Safeguard consumers, savers, and investors

4.3. Carries out these tasks through regulatory agencies

4.4. http://economics.about.com/od/howtheuseconomyworks/a/government.htm

4.5. The government regulates to keep stabilization and growth. It adjusts tax rates and manages money. The government tries to make more jobs to keep unemployment down.