Question

.4 Government Role in the Economy Mark each statement as true or false. For any false answer, cross out the false part and write the correction in the box. Change - if false (1.5 points each) Statement T/F (2 points each) People agree on how the government should spend money The government plays a role in the establishment of and protection of property rights Balancing the budget means the government borrows more money than it makes Most controversial of government aid programs are cash transfers. The government plays a role in the regulation of labor. A new highway would be an example of a private good. The government plays no role redistribution of income and wealth.
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Answer #1

Ans. 1) False , Correct - People Disagree about how government should spend money.

2) True

3) False , Correct - Budget Deficit means that the government is borrowing more money than it makes.

4) True

5) True

6) False , Correct - A new highway would be an example of Public Good.

7) False , Correct - Government plays a major role in redistribution of income and wealth.

Best of Luck !! !!

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