Economic Goals; Role of Government; Economic Growth and Productivity

1) How are the economic goals of freedom, security, efficiency, equity, stability, and economic growth achieved in a market economy?


Answer: Because without freedom the Market Economy wouldnt be as sucessful as it is today. Freedom give the market economy the right to get a product sold by any means necessary. The security of the system is what keep the market economy going, without security , it is possible for one company or individual to dominate a industry without any compentition. You have to have efficiency in order to sucessfully be invovled in the market economy because everybody have to have the same amount power or capcity to produce a product. Equity is a key requirement of the market economy, thats when the government step in to make sure everyone have a fair chance. In order to have stability you have to have an economy with fairly constant output growth and low and stable inflation would be considered economically stable. Economic growth is where the economy be at a stable pace, while increasing






2) Why has the role of government in the economy increased dramatically since the 1880s ?


Answer:  The role of government increased to incern that the 6 economic goals of freedom, efficiency, equity, stability, security and economic growth be enforced properly






 3)Write an argument that supports or opposes the statement in the visual below that says deregulation wont work because people are greedy ?


Answer:(No Picture) I believe deregulation wont work, the whole purpose of starting a business is to make money. Its very little people who can say they have enough money. WHY ?? Because you can never have enough money. And without regulation prices will be through the roof, workers will be mistreated, and it wouldnt benefit the consumers or owner, because it will be less purchases made, which means consumers will have to go without and the owner will have very little profit.




4) Explain why the government provides public goods and services? Why are these public goods and services NOT provided by the private sector?


Answer: The government collect taxes and provides things such as sidewalks, street lights, police services, etc. Government provides these goods and serivces because its more efficient and promotes economic. Private sectors does not provide goods and services because the value of goods and services is more than a individual can afford and would only be provided to a few




5) What are the 6 functions of government in a market economy( Provide an example of how the government fulfills each of these 6 functions)


Answer:




1. Nationalize businesses and then micromanage them into bankruptcy.






2. Choose the businesses to nationalize based on their nearness to bankruptcy anyway, so the people will become owners of the biggest failures in the country.






3. Lend massive amounts of money to these companies just before they go bankrupt and default on the loan, leaving all that massive debt on the taxpayers to repay it.






4. Provide a virtually unlimited supply of cheap immigrant labor with H1b visas to replace all highly qualified and experienced college graduates with decades of experience and mortgages to pay and kids to put through college.






5. Let illegal workers swarm into the country and travel thousands of miles into U.S. territory unopposed, then let them stand around in big crowds all over every major city, waiting to take even more jobs from highly qualified and experienced blue collar workers.






6. Bury all U.S. businesses in a moutain of regulation that drives up their costs for the sake of protecting the rights of the workers, the consumers, and the environment, but then insist on "free trade" so that businesses can't possibly compete with foreign sweatshops in countries that do not enforce any such laws, so they have a huge cost advantage.






6) Describe the relationship that inputs and outputs have on productivity?

Answer: The input is adding more capital to a business to increase the workers productivity, which will improve the business output. In additional to that also increase the company's profit.




7) How do investments in capital goods, technology, human capital and training and educating workers, improve productivity and economic growth?


Answer: Because the more money you put into a business determines the money you get out of a business purchasing a capital good increase your productivity rate. Technology improves everyday, and having the lastest technology is a very smart and useful investment which will make a business compatible and able to make more money. Educating and training human capital is always a plus for a company to thrive. In order for a company to be relevant 5 years from now you have to be up-to date on the latest. So sending workers back to school or training them to increase their knowledge is necessary to improve a company as a whole.




8) Refer to the chart below and explain the cause of the decrease in the ouput , productivity and employment in manufacturing in the United States. What can the United States do to reverse this downward trend in manufacturing?