Role of Government in Economics

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David J


Date added:

March 2, 2014







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4 / 974


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Discrete units of government referee economic relationships, seek out foul play, and impose penalties. Government intervention is presumed to improve the allocation of resources. By supplying a medium of exchange, ensuring product quality, defining ownership rights, and enforcing contracts, the government increases the volume and safety of exchange...
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This widens the market and fosters greater specialization in the use of property and human resources. Such specialization promotes a more efficient allocation of resources. The government improves the operation of a market system by maintaining competition. Competition is the basic regulatory mechanism in the market system...
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