The government decides that it will cut taxes in an attempt to move the economy out of a severe recession. Productive function whereby the government promotes economic stability through fiscal policies Productive function whereby the government maintains market competition O Productive function whereby the government redistributes income from rich to poor Productive function whereby the government produces goods that are difficult for private markets to supply An entrepreneur incorporates a new business in the state of Delaware so that the firm can enter into a lease to use a factory and purchase raw materials. Redistributing income O Reallocating resources Enforcing contracts O Maintaining competition
The government decides that it will cut taxes in an attempt to move the economy out of a severe recession. Productive function whereby the government promotes economic stability through fiscal policies Productive function whereby the government maintains market competition O Productive function whereby the government redistributes income from rich to poor Productive function whereby the government produces goods that are difficult for private markets to supply An entrepreneur incorporates a new business in the state of Delaware so that the firm can enter into a lease to use a factory and purchase raw materials. Redistributing income O Reallocating resources Enforcing contracts O Maintaining competition
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter30: Government Budgets And Fiscal Policy
Section: Chapter Questions
Problem 9SCQ: True or False: Federal spending has grown substantially in recent decades. By world standards, the...
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i am having trouble with this question microeconmics chapter 5 question 2
![### 2. Government Functions
For each of the following scenarios involving the U.S. government, determine the primary function of government that is being served.
---
**Scenario 1:**
The government decides that it will cut taxes in an attempt to move the economy out of a severe recession.
- ○ Productive function whereby the government promotes economic stability through fiscal policies
- ○ Productive function whereby the government maintains market competition
- ○ Productive function whereby the government redistributes income from rich to poor
- ○ Productive function whereby the government produces goods that are difficult for private markets to supply
---
**Scenario 2:**
An entrepreneur incorporates a new business in the state of Delaware so that the firm can enter into a lease to use a factory and purchase raw materials.
- ○ Redistributing income
- ○ Reallocating resources
- ○ Enforcing contracts
- ○ Maintaining competition](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7bc4abbc-6f0e-4127-852c-20eb678f5a05%2F9a7c3e89-01e2-41be-aeaa-2ab76257e45c%2F6qvsr4h.png&w=3840&q=75)
Transcribed Image Text:### 2. Government Functions
For each of the following scenarios involving the U.S. government, determine the primary function of government that is being served.
---
**Scenario 1:**
The government decides that it will cut taxes in an attempt to move the economy out of a severe recession.
- ○ Productive function whereby the government promotes economic stability through fiscal policies
- ○ Productive function whereby the government maintains market competition
- ○ Productive function whereby the government redistributes income from rich to poor
- ○ Productive function whereby the government produces goods that are difficult for private markets to supply
---
**Scenario 2:**
An entrepreneur incorporates a new business in the state of Delaware so that the firm can enter into a lease to use a factory and purchase raw materials.
- ○ Redistributing income
- ○ Reallocating resources
- ○ Enforcing contracts
- ○ Maintaining competition
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