Unit 3 Economics: Roles of Government in Mixed Economies

Flashcards covering the roles of government and the characteristics of mixed economies from Unit 3.

Mixed Economies

The system type of most modern economies, resulting from the fact that individual economic systems have both pros and cons.

Government's Role in a Mixed Economy

To promote the "pros" and minimize the "cons" of economic systems through specific regulatory and stabilizing actions.

Provision/Regulation of Public Goods

A government role used to promote the pros and minimize the cons of an economic system.

Redistribution of Income

A designated government role in mixed economies aimed at addressing economic pros and cons.

Stabilizing the Economy

A government role focused on minimizing the negative fluctuations and reinforcing the advantages of the economy.

Protection of Property Rights

A role through which the government upholds legal ownership to support the economic system.

Correction of Externalities

A government role aimed at resolving unintended economic side effects to maximize benefits and reduce harms.

Maintaining Competition

A government role designed to preserve competitive markets within mixed economies.

Regulation of Production

A government role involving oversight of production activities to minimize cons and advance pros in the economy.