About This Chapter
Role of Government in Macroeconomics - Chapter Summary
Feel confident in your grasp of the role of government in macroeconomics with help from this self-paced chapter. The entertaining lessons make it easy to comprehend topics like market power in economics, the progressive tax code and the government's role in the market economy. Access these lessons as short videos that average 8 minutes each or full written transcripts you can read online or print. Find out how much you understand about the topics covered by taking mini quizzes and a practice exam. After finishing this chapter, you will be able to:
- Discuss the role government plays in a market economy
- List and describe key goals of the U.S. economy
- Explain how the government protects the U.S. economy and promotes economic interests
- Define and share examples of public good and market power in economics
- Identify and discuss three fiscal policy tools used by the government
- Describe the progressive tax code and list its alternatives
1. The Role of Government in a Market Economy
In this lesson, you'll examine the role of government in a market economy. You'll learn what kinds of activities may require government interaction, such as those related to consumer and property rights.
2. Economic Goals for the US Economy
This lesson will highlight the key economic goals of the United States economy, including examples to help you remember these different values. You'll also consider some of the challenges of balancing these goals.
3. How the Government Protects the U.S. Economy
The following lesson will cover the ways in which the government protects the U.S. economy and ensures stable economic growth. A short quiz will follow the lesson to check for your understanding.
4. How the Government Promotes Economic Interests
The following lesson will cover how the government promotes its economic interests through businesses, labor, and agriculture. There will be a short quiz following the lesson to check your understanding.
5. Public Good in Economics: Definition, Theory & Examples
Have you ever gone to the mall when there was a power outage at your house or gone into a nice cool cafe on a hot day to beat the heat? This lesson defines and discusses the theory of public goods. You will learn what public goods are and how to identify them.
6. Market Power in Economics: Definition, Sources & Examples
This lesson aims to present market power in the economic sense. It will provide a definition, sources, and examples of how organizations can use economic power to their advantage, to maximize their profit potential.
7. Fiscal Policy Tools: Government Spending and Taxes
Discover the three main tools the government uses to address recessionary and inflationary economies - what economists call fiscal policy. Find out how these tools are used to help the economy in different situations.
8. Understanding the Progressive Tax Code
In this lesson, learn what a progressive tax code is, how to recognize it, and what the alternatives are. Then, learn the differences between the three tax codes: progressive, regressive and proportional. Finally, learn how sales tax would impact progressivity.
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Other chapters within the UExcel Introduction to Macroeconomics: Study Guide & Test Prep course
- Fundamental Concepts of Macroeconomics
- Government Failure in Macroeconomics
- Demand, Supply & the Economic Market
- National Income Accounting Overview
- Unemployment & the Economy
- Basic Concepts of Inflation
- Measurements of Inflation
- The Business Cycle & Economics
- Aggregate Demand in Economics
- Fiscal Policy in Economics
- Budgets & National Debt
- Understanding Monetary Policy
- Fundamentals of Money
- Understanding the Federal Reserve System
- Supply-Side Policy & Policy Comparisons
- UExcel Introduction to Macroeconomics Flashcards