Roles of the Government

Question 1

What are the five objectives of the government?

Answer 1

• sustainable economic growth
• internal balance including full employment and price stability
• external balance including a stable exchange rate and stable trade
• improved standards of living
• equitable distribution of income and wealth .

Question 2

What are the three roles of the government?

Answer 2

Allocation, Distribution and Stabilisation

Question 3

What are some of the roles the government has in the market?

Answer 3

Superannuation, Health, unemployment, university funding and environment.

Question 4

How does government intervention benefit the economy?

Answer 4

Government intervention improves the education and training of people, helps improve health care, creates jobs and ensures that resources will be available for future generations. Without government intervention there will be little economic growth and living standards will not improve.