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Government's role as a distributor of scarce public resources

Government's role as a distributor of scarce public resources

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Answer #1

Government's plays a role as a distributor of the scarce public using the restrictions, taxes, and laws for determining the allocation. Both elected and unelected officials have the power and ability to divide up a given resource. Political affiliation and debate influence how a government divides a scarce resource. For example in case of Water as a scarce resource. There is typically a limited amount of drinkable water in a given area. The city government decides to increase the tax on water usage or put restrictions on water use in case of draught.

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