A Critical Function of the Government in Facilitating the Operation

question 72

Multiple Choice

A critical function of the government in facilitating the operation of a market economy is

• A)producing goods and services for low-income households.
• B)setting up and enforcing private property rights.
• C)ensuring an equal distribution of income to all citizens.
• D)controlling the market prices of essential services.

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Definitions:

Federal Government

A system of government where power is divided between a central national government and various regional governments.

Taxes Collected

The total amount of money received by a government from individuals, corporations, and other entities as compulsory charges imposed on income, property, sales, etc., for public financing.

Equity

The concept of fairness in economics, which can refer to the distribution of wealth, income, or resources within a society.

Efficiency

The optimal use of resources to achieve the desired ends with minimal waste or expense; often relates to economic efficiency where resources are allocated in a way that maximizes the net benefit to society.