Role of Government Sem 1

• Econs
• Secondary Education

Role of Government Sem 1

Influence of government on personal economic and financial decisions

Government can influence personal consumer and financial decisions in a number of ways:

• redistributes income to enable all people to achieve a minimum standard of living, 
• establishes laws and regulations for consumer protection, and
• provides incentives that encourage individuals to act in an informed manner and to provide for themselves over the course of their life. 

In Unit 1 we focus on 

taxation 

and 

government spending 

with an understanding of income redistribution

What does it mean to distribute?

Distribute

Distribute means to share out.

To redistribute means to share out again.

Redistribution of income means to share out income again among a group. 

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