Government and the Economy

Plan your website and create the next important tasks for get your project rolling

Get Started. It's Free
or sign up with your email address
Government and the Economy by Mind Map: Government and the Economy

1. How Should Government Address Externalities and Public Goods?

1.1. The federal and state governments has variety of policies to limit negative externalities and support positive externalities.

1.2. http://www.econlib.org/library/Enc1/PublicGoodsandExternalities.html

1.3. The fireworks example illustrates the "free-rider" problem. Even if the fireworks show is worth ten dollars to each person, no one will pay ten dollars to the entrepreneur. Each person will seek to "free-ride" by allowing others to pay for the show, and then watch for free from his or her backyard. If the free-rider problem cannot be solved, valuable goods and services, ones that people want and otherwise would be willing to pay for, will remain unproduced.

2. What Regulatory Roles Does Government Play in Our Economy?

2.1. Uses its regulatory power to maintain competition. Safeguard consumers, savers, and investors. Tasks are carried out through regulatory agencies, which create and enforce standards and regulations for industries.

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

2.3. By adjusting spending and tax rates or managing the money supply and controlling the use of credit. It can slow down or speed up the economy's rate of growth.

3. How Does the Government Protect Property Rights?

3.1. The government is empowered by the Constitution to protect private property rights. Uses the court system, Patent and Trademark, police forces.

3.2. http://www.econlib.org/library/Enc/PropertyRights.html

3.3. Social critics of “property” rights do not want to abolish those rights. Rather, they want to transfer them from private ownership to government ownership. Some transfers to public ownership (or control, which is similar) make an economy more effective.

4. What Does Government Do to Promote Economic Well-Being?

4.1. Preserve economic stability the government stimulates the economy by spending more money.

4.2. http://www.debate.org/opinions/should-the-government-play-the-primary-role-in-the-protection-and-promotion-of-the-economic-and-social-well-being-of-its-citizens

4.3. The economic and social well-being of citizens is a primary role of the government. Money is direct to consumers like food stamps and welfare to the unemployed.