First and for most what is government? Who is the government and the goverance in the country.Government can be seen as a body capable of making law and policies which must be made by him pass to the governce by the body called the judiciary.There fore the following shows the role of a government in any countries (1) Protection of the citizens against internal and external aggressionsof the country(2) Provision of social amenities e.g hospitals, schools, good motorable roads, pipe borne hole water etc(3)Good relations with other countries.(4) Making law to the country which would be carried out by the judiciary(5) Provision of employment oppourtunities.
An ideal market economy is one in which all goods and services are voluntarily exchanged for money at market prices. Such as system squeezes the maximum benefits out of a society's available resources without government intervention. In the real world, however no economy actually conforms totally to the idealized world of the smoothly functioning invisible and. Rather, every market economy suffers from imperfections which lead to such ills as excessive pollution, unemployment, and extremes of wealth and poverty. For that reason, no government anywhere in the world, no matter how conservative, keeps its hand off the economy. In modern economies governments take on many tasks in response to the flaws in the market mechanism. The military, the police, the national weather service, and highway construction are all typical areas of government activity. Socially ventures such as space exploration and scientific research benefit from government funding. Governments may regulate some business while subsidizing others. And governments tax their citizens and redistribute some of the proceeds to the elderly and the needy. But for all the wide range of possible activities, governments have three main economic functions. 1. Governments increase efficiency by promoting competition. 2. Governments promote equality by using tax and expenditure. 3. Governments foster macroeconomic stability and growth.
