The Role of the Government


 
4.1 Explain the basic functions of government in a market economy.
4.2 Explain how markets produce too few public goods and how the government determines the amount to produce through looking at benefits and costs.
4.3 Describe how the government taxing harmful spillovers and subsidizing helpful spillovers helps to resolve the inefficiency they cause.
4.4 Describe major revenue and expenditure categories and their respective proportions of local, state and federal budgets.
4.5 Explore the ways that tax revenue is used in the community.
4.6 Identify taxes paid by students.
4.7 Define progressive, proportional and regressive taxation.
4.8 Determine whether different types of taxes (including income, sales and social security) are progressive, proportional or regressive.
4.9 Describe how costs of government policies may exceed benefits, because social or political goals other than economic efficiency are being pursued.
   
   
 

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