EC 200 W chapters 17, 18, 20, 21, 23, 24, and 25

RUNNING HEAD : EC200 CHAPTERS 17 , 18 , 20 , 21 , 23 , 24 AND 25

NAME

INSTITUTION

DEGREE

TUTOR

YEAR CHAPTER 17 : GOVERNMENT FUNCTIONS

In the economic system of any country , the government is the authority governing the day to day transactions and dealings between individuals whether private or public . Other functions are enforcement of rules and regulations , overseeing the making and execution of contracts and setting of standards to be followed . To do this , resources are required hence collection of taxes . The functions aside , the government itself owns firms

within the economy hence a player

The role played by the state /government has been under close support and criticism simultaneously . In some countries , the government 's role is welcome whilst in others it detested . The main object of government in both scenarios though is the allocation of scarce resources and creating an environment suitable for such resources to be exploited This is achieved through ensuring that law and is maintained External costs incurred by businesses that are not factored in the business transactions are also taken into account by the government This is in to protect them from exploitation which may otherwise lead to bankruptcy and collapse

The government 's role shouldn 't be solely that of creation of a good environment for business via maintenance of law and . Rather , it should go beyond this by being a key player in the economy . Law and though facilitates stability as well as reduces corruption hence encouraging investment

Using the...