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? SECTION 9: ROLE OF GOVERNMENT IN AN ECONOMY
SPECIFIC OBJECTIVES
Students should be able to:
1. outline the responsibilities of
government in an economy;
2. describe how government can
influence businesses to protect the (b) protection and general welfare of
environment;
3. state the purposes of taxation;
CXC 08/G/SYLL 17
CONTENT
Responsibilities of government in an
economy:
(a) security of the State;
citizens;
(c) job security and severance benefits to
workers;
(d) protection of the environment;
(e) maintenance of a safe environment
for investors; and,
(f) regulation of business activity in terms
of providing clear guidelines as how to
set up businesses.
Policy or legislation on:
(a) green technology;
(b) reforestation;
(c) proper disposal of waste;
(d) zoning laws; and,
(e) the appropriate use of technology in
production and disposal of wastes.
Reasons why government charge taxes:
(a) to curb inflation by reducing the
supply of money in the economy;
(b) to remove competition from local
goods in order to protect infant or
fledgling industries by taxing imports
at high rates;
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