Question

1. What are the 5 major functions of the US government in our economy? Provide real instances for each one.1.

2. How the antitrust policy was played against Microsoft in the US and Europe from 1999 to 2007?

3. How can local governments use quota restrictions, taxes and marketable permits to reduce the consumption of cigarettes because of its negative effect on non-smokers?

4. What are the main elements of selling products and services to the US government?

Answer 1

1. The five major functions of the US government in the economy are-

• Maintaining capitalist markets - e.g.-The US government creates and enforces its antritrust laws and also supervises its natural monopolies,
• Stabilization of economy - e,g.- Usage of federal budget to control unemployment & inflation,
• Supply goods and services - e.g.- National defence is an example of a service that markets would be unable to provide without the aid of the government,
• Redistribution of income - e.g.- Provisions of tax slabs using Fiscal policy for different earning classes, medical insurance, social security,etc.
• Monetary Policy - e.g.- Regulation of interest rates and money supply to achive stability in prices.