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ECO 203 Week 1 DQ 2 Role of Government .pdf


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ECO 203 Week 1 DQ 2 Role of Government

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ECO 203 Week 1 DQ 2 Role of Government

Role of Government

Economics is the study of how society chooses to allocate its scarce productive resources (labor, capital,
land, entrepreneurial talent).

In a mixed economy, elements of both central planning and market allocation of resources are used in
allocating productive resources.

The United States economy is a mixed economy, with a bias towards market allocation of resources.

This means most resources are allocated in the private sector by way of markets.

Discuss whether you favor a larger or smaller role of government in the economy. Refer to concepts found
in the reading to support your opinion.

Reference: Chapter 2: Markets, Governments, and Nations: The Organization of Economic Activity


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