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  • Funciones Económicas Del Estado

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    adriana_aquino_1
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    The document outlines four main functions of government in the economy: 1) Regulate business to prevent abuses, protect consumers, limit negative externalities, and promote competition. 2) Provide public goods like infrastructure, education, defense, and services that benefit all citizens. 3) Redistribute income through social insurance programs people pay into like Social Security and public assistance programs for those in need like welfare and Medicaid. 4) Ensure economic stability by keeping unemployment and inflation rates low.

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    Funciones económicas del estado

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    The document outlines four main functions of government in the economy: 1) Regulate business to prevent abuses, protect consumers, limit negative externalities, and promote competition. 2) Provide public goods like infrastructure, education, defense, and services that benefit all citizens. 3) Redistribute income through social insurance programs people pay into like Social Security and public assistance programs for those in need like welfare and Medicaid. 4) Ensure economic stability by keeping unemployment and inflation rates low.

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    Download as PDF, TXT or read online from Scribd
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    19 views6 pages

    Funciones Económicas Del Estado

    Uploaded by

    adriana_aquino_1
    The document outlines four main functions of government in the economy: 1) Regulate business to prevent abuses, protect consumers, limit negative externalities, and promote competition. 2) Provide public goods like infrastructure, education, defense, and services that benefit all citizens. 3) Redistribute income through social insurance programs people pay into like Social Security and public assistance programs for those in need like welfare and Medicaid. 4) Ensure economic stability by keeping unemployment and inflation rates low.

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    of 6

    The Functions of Government in our Economy

    Regulate Business

    Government regulation has four main purposes: Preventing abuses-prevents business from taking unfair advantage of workers (discrimination, etc.) Protecting consumers-FDA, FCC, SEC Limiting negative externalities-limit the negative effect of the economy on citizens (pollution, traffic congestion, soil erosion, etc.) Promoting competition-creating and enforcing of the anti-trust laws (no monopolies)

    Provide Public Goods

    a special type of goods or services that the government tries to supply to its citizens

    streetlights, national defense, court systems, correctional institutions, law enforcement

    merit goods-a good that is considered socially acceptable

    museumsSmithsonian Institute

    demerit goods-a good that is considered socially unacceptable

    alcohol, tobacco, firearmsstrict taxation and/or regulation

    Redistribute Income

    using taxes to assist citizens in need Social Insurance Programs-MUST PAY TO RECEIVE

    Citizens paychecks Pay benefits to retired and/or disabled workers


    social security workers compensation

    Redistribute Income

    Public Assistance Programs-RECEIVE REGARDLESS OF WHETHER TAXES HAVE BEEN PAID INTO PROGRAM

    welfare-payments to citizens based on need W.I.C.-women, infants, & children

    $ to single mothers; low income

    C.H.I.P.-Childrens Health Insurance Program Medicaid-free healthcare for low income persons

    Ensure Economic Stability


    keep the unemployment rate low keep the inflation rate low

    a rise in the general price level of goods and services

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