4.1- Role of the government

Question 1

What are the 3 types of government intervention

Answer 1

Local intervention
National (macroeconomic) intervention
International intervention

Question 2

What are examples of local intervention

Answer 2

Local health services
Refuse collection
Parking fines
Local prosecutions
Parks & recreation
Public services

Question 3

What are the reasons why governments intervene at a local level

Answer 3

Local governments are responsible for delivering government services on a town/regional basis
They usually receive funding from the central government & are held accountable for the quality of goods/services provided by the voters in their area
Local government branches are often referred to as ‘councils’, ‘federal’ or ‘state’

Question 4

What does the government intervene with at a national level

Answer 4

Central Government
Fiscal Policy
Monetary Policy
Supply-side Policy

Question 5

why do the government intervene at a national level

Answer 5

Determining the best combination of policies that will help them to meet all of their macroeconomic aims

Question 6

What does the government intervene with at a international level

Answer 6

Exchange rate interventions
Protectionism

Question 7

why do the government intervene at a international level

Answer 7

International trade is vital to economic growth in many economies
Governments have a role to both protect domestic industry & to help it compete internationally