Answer to Question #129000 in Economics of Enterprise for Phenyo Monareng

Question

Public economics is the study of the nature, principles and economic consequences of expenditure, taxation and financing, and regulatory action undertaken by the non‐profit‐making government sector of the economy” (Black, Calitz, & Steenekamp, 2017).
What is it that the government tries to achieve through its expenditure, taxation and financing, and regulatory action in the economy?
(5)
Q.2.2
Provide any FIVE examples where the government uses its regulatory power to manage the South African economy.
(5)

Answer 1

Q2.1}The government involves itself in regulatory action, spending and taxation to ensure there is stability in the economy. The government wants to boost growth and reduce inflation or deflation.Also the government wants to attract new investors in the economy and reduce government deficits.

Q2.2)

There are five areas where the S.A government exercise its regulatory power namely infrastructure developments, Electricity generation, Mining , consumer protection and regulation of pollution