The Role of the Government in the Economy
Virginia SOL GOVT.14
Explain the role of government in the Virginia and United States economies.
What students need to be able to do
- Explain government's limited but important role in free enterprise and its effect on individual economic freedoms.
- Describe the provision of government goods and services not readily produced by the market.
- Evaluate government's establishment and maintenance of rules and institutions for markets, including property rights, contracts, consumer rights, labor-management relations, environmental protection, and competition.
- Investigate and describe the types and purposes of taxation used by local, state, and federal governments to fund services.
- Analyze how Congress can use fiscal policy to stabilize the economy.
- Describe how the Federal Reserve can use monetary policy to pursue price stability, full employment, and economic growth.
- Evaluate the trade-offs in government decisions.