. Directions: Below is a list of the six economic functions of government, followed by a set of 12 (fictitious) newspaper headlines. Decide which of the six economic functions is referred to, directly or by implication, in each headline. Classify each headline according to the six functions by writing in the letter of the economic function that best fits that headline. The Six Economic Functions: a. Maintain the Legal and Social Framework b. Maintain Competition c. Provide Public Goods and Services d. Correct for Externalities e. Stabilize the Economy f. Redistribute Income The Headlines: ____ 1. Federal Reserve Raises Key Interest Rate ____ 2. Congress Raises Tax Rates for Top Income Brackets ____ 3. EPA Plan to Reduce CO2 Emissions ____ 4. Homeland Security Funding Increased ____ 5. President Says More Spending Will Fight Recession ____ 6. Agency Blocks Merger of Two Airlines ____ 7. City Police Increase Neighborhood Patrols ____ 8. Lawsuit Establishes Patent Rights ____ 9. Legislature Passes Funding for Subsidized Housing ____ 10. New Info from Government Agency Helps Consumers Choose Wisely ____ 11. Songwriter Sues Singer; Says Song Stolen ____ 12. County Funds Free Flu Vaccinations
. Directions: Below is a list of the six economic functions of government, followed by a set of 12 (fictitious) newspaper headlines. Decide which of the six economic functions is referred to, directly or by implication, in each headline. Classify each headline according to the six functions by writing in the letter of the economic function that best fits that headline. The Six Economic Functions: a. Maintain the Legal and Social Framework b. Maintain Competition c. Provide Public Goods and Services d. Correct for Externalities e. Stabilize the Economy f. Redistribute Income The Headlines: ____ 1. Federal Reserve Raises Key Interest Rate ____ 2. Congress Raises Tax Rates for Top Income Brackets ____ 3. EPA Plan to Reduce CO2 Emissions ____ 4. Homeland Security Funding Increased ____ 5. President Says More Spending Will Fight Recession ____ 6. Agency Blocks Merger of Two Airlines ____ 7. City Police Increase Neighborhood Patrols ____ 8. Lawsuit Establishes Patent Rights ____ 9. Legislature Passes Funding for Subsidized Housing ____ 10. New Info from Government Agency Helps Consumers Choose Wisely ____ 11. Songwriter Sues Singer; Says Song Stolen ____ 12. County Funds Free Flu Vaccinations
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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4. Directions: Below is a list of the six economic functions of government, followed by a set of 12 (fictitious) newspaper headlines. Decide which of the six economic functions is referred to, directly or by implication, in each headline. Classify each headline according to the six functions by writing in the letter of the economic function that best fits that headline. The Six Economic Functions:
a. Maintain the Legal and Social Framework
b. Maintain Competition
c. Provide Public Goods and Services
d. Correct for Externalities
e. Stabilize the Economy
f. Redistribute Income
The Headlines:
____ 1. Federal Reserve Raises Key Interest Rate
____ 2. Congress Raises Tax Rates for Top Income Brackets
____ 3. EPA Plan to Reduce CO2 Emissions
____ 4. Homeland Security Funding Increased
____ 5. President Says More Spending Will Fight Recession
____ 6. Agency Blocks Merger of Two Airlines
____ 7. City Police Increase Neighborhood Patrols
____ 8. Lawsuit Establishes Patent Rights
____ 9. Legislature Passes Funding for Subsidized Housing
____ 10. New Info from Government Agency Helps Consumers Choose Wisely
____ 11. Songwriter Sues Singer; Says Song Stolen
____ 12. County Funds Free Flu Vaccinations
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