Question

( 4 ) Richard Musgrave has provided us with a 3-part defining state of the " role of government . Please describe each , and provide an example for each role.

Answer 1

Ans

1 proper allocation of resources=Govt should made it possible that resources are utilized efficiently and according to most important needs of society. E G through taxes Govt should divert resources from harmful sectors like alcohol production to useful sectors

2 maintenance of stable economy so that economy doesn't hurt people. E. G It should make such policies which Aviod inflation, unemployment, recession etc

3 proper distribution of income is its other primary responsibility It should protect the poor, provide for proper redistribution through measures like welfare schemes for poor. It should also remove inequality. E. G Rich should be taxed and resouces so collected should be distributed as unemployment benefits