What are the limitations to government’s role in the economy?

Please provide the best answer for the statement.


Although there are many roles for government to play in the economy, the task is not an easy one. Government actions and policies are decided in a political arena. The political problems can complicate the role of government and in some cases produce undesirable outcomes.

Economics

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It is usually more efficient to tax a large base at a low rate than to tax a small base at a high rate. ?

Answer the following statement true (T) or false (F)

Economics

The financial statements of firms generally are audited by

A) employees of the firm being audited. B) employees of private accounting firms. C) the board of directors of the corporation being audited. D) employees of the federal government.

Economics

Everything else held constant, if a central bank makes an unsterilized purchase of foreign assets, then the domestic money supply will ________ and the domestic currency will ________

A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate

Economics

Short-run contractions and expansions in economic activity are called

A) recessions. B) expansions. C) deficits. D) the business cycle.

Economics