basic functions of a government Flashcards
internal and external
external: the defense force [navy and army]
internal: the police force
judicial system [courts]
social welfare [social services]
private sector: private schools,hospitals,doctors
social benefits: unemployment and pension
commercial activities
mixed market: a combination of a free market system and a system where government to some extent in the economy.
free market: anybody can start a business with the aim of making a profit, provided they do not sell anything illegal.
government has the responsibility to promote the free-market system, to ensure that…
1) citizens are not exploited by companies forming a monopoly.
2) employees are treated in a fair manner.
administration of public services
the public services that government renders to the citizens of the country is called infrastructure.
natural resources
if used irresponsibly, the economy will be harmed over the long term.
money control
too much money in circulation will cause inflation and devalue the currency