How does governments power to coerce behavior tend to reduce private sector risk?
How does government’s power to coerce behavior tend to reduce private-sector risk? By enforcing contracts and discouraging illegal behavior that threatens private property.
What are the key differences between the economic activities of government and those of private firms?
Which of the following is a key difference between the economic activities of government and those of private firms? Government has the legal right to force people to do things; private firms do not. The government’s ability to coerce can enhance economic efficiency by: correcting market failures.
Which of the following is a source of government failure quizlet?
The two main causes of government failure are: When government fails to perform a necessary task efficiently and when government fails to do only those tasks that it should do.
Why do government experts track the business cycle?
why does the government track and seek to influence business cycles? to promote economic growth and stability.
Which type of analysis seeks to understand government decision making politics and elections?
The field of economics that analyzes government decision making, politics, and elections is called: public choice theory.
Which of the following is an activity of government that is not an activity of private firms?
Which of the following is an activity of government that is not an activity of private firms? Enforcing involuntary transactions.
Which of the following roles does the government fulfill in the economy?
Governments provide the legal and social framework, maintain competition, provide public goods and services, redistribute income, correct for externalities, and stabilize the economy.
What is the role of government in the private sector?
Government plays a central role in supporting economic growth and reducing poverty. It needs to provide good policy, strong institutions and efficient public goods and services to ensure the private sector can thrive and the benefits of growth reach all citizens.
What does the government do in a free enterprise system?
The backbone of the system includes a government that enforces property rights and provides necessary goods and services that the private market would have difficulty producing. Most free enterprise systems consist of four components: households, businesses, markets and governments.
Why the US government makes transfer payments?
These payments are considered a redistribution of wealth from the well-compensated to the poorly compensated. They are made both for humanitarian reasons and, at times of economic distress, to help stimulate the economy by putting more money into people’s hands.