The difference between the economic and political functions of government is that
A) the economic function is concerned with the Federal Taxation system while the political function is not.
B) the economic function is concerned with correcting for market failures while the political function is not.
C) the economic function is concerned with the reallocation of income while the political function is not.
D) the economic function encourages merit goods while the political function discourages demerit goods.

Question

Quizplus · Accepted Answer

The economic function of government is concerned with correcting market failures such as negative externalities, public goods, and information asymmetry while the political function is concerned with creating and enforcing laws, maintaining order, and protecting citizens' rights. The other options are not accurate descriptions of the difference between economic and political functions.

The Difference Between the Economic and Political Functions of Government