Answer to Question #93943 in Economics of Enterprise for Abby

Question

4. Make an economic argument why the government should assist ‘needy people’.

Answer 1

The government should assist ‘needy people’ because in the long run it decreases negative externalities for society, which represent the reimbursement of the costs of eliminating the consequences of crimes and underproduction of gross domestic product due to lack of education inherent in these people.