Role of Government in Economy
Role of government in an economy
Candidates should be able to:
- describe the government as a producer of goods and services and as an employer
- describe the aims of government policies, such as full employment, price stability, economic growth, redistribution of income, balance of payments stability
- explain fiscal, monetary and supply-side policies
- analyse the use of fiscal, monetary and supply-side policies
- discuss the possible conflicts between government aims
- describe the types of taxation (direct, indirect, progressive, regressive, proportional) and the impact of taxation
- discuss the government’s influence (regulation, subsidies, taxes) on private producers.