1. Government and a Free Market System
Examples of these goods includes national defense, or street lighting. ... For example, taxing cigarettes allows funds to be used for health care and other programs. ... The government establishes policies in order to smoothen the fluctuations including monetary policies or fiscal policies. Monetary policies are to influence the interest rates, and supply of money. Fiscal policies influence resource allocation, redistribution of income, and stabilising the economy. ...
- Word Count: 750
- Approx Pages: 3
- Grade Level: Undergraduate