Local, National & International (Cambridge International IGCSE Economics)
Exam board Cambridge International · IGCSEUpdated 2024-06-18
Government Roles in a Mixed Economy
Spec point —
4.1.1
-
Nearly every economy in the world is a mixed economy & has varying degrees of government intervention
-
Governments intervention is necessary for several reasons & occurs on three distinct levels
- Local intervention
- National (macroeconomic) intervention
- International intervention
The Role of Government in a Mixed Economy
| Area of Intervention | Examples of Intervention | Explanation |
|---|---|---|
| Local | - Local health services - Refuse collection - Parking fines - Local prosecutions - Parks & recreation - Public services | - Local governments are responsible for delivering government services on a town/regional basis - They usually receive funding from the central government & are held accountable for the quality of goods/services provided by the voters in their area - Local government branches are often referred to as 'councils', 'federal' or 'state' |
| National | - Central Government - Fiscal Policy - Monetary Policy - Supply-side Policy | - Determining the best combination of policies that will help them to meet all of their macroeconomic aims |
| International | - Exchange rate interventions - Protectionism | - International trade is vital to economic growth in many economies - Governments have a role to both protect domestic industry & to help it compete internationally |
Was this revision note helpful?
Build on this topic