Ge273 Project 1

In: Business and Management

Submitted By wwwhitney1967
Words 895
Pages 4
Date: 1/10/2012
To: Lead Economist Laura
From:
Subject: Voter Victor / Project Part 1 / U.S. Economic System

The information provided below is for Voter Victor.
For an understanding of the of the US (United States) economic system and how the government is involved, one must have an understanding of what type of economy the US has, the three primary levels of US government (city/county, state and federal), what is expected of these governing levels and what must be provided to them to support their functions (funding).
By definition (Definition below) the US has a Mixed Economy but due to the limited government involvement, it can be said that the US has a Market Economy (definition below). An example of this production of electricity by a coal burning plant. There is no limit on how much electricity can be made or how much coal can be used but the government has regulated how much pollution may be produced as a result of burning the coal.
Mixed Economy: An economy in which most economic decisions result from the interaction of buyers and sellers in markets but in which the government plays a significant role in the allocation of resources.
Market Economy: An economy in which the decision of households and firms interacting in markets allocate economic resources.

The three levels of government, local (city and county), state, and federal, will now be explained including what services they provide, how those services are funded and voter involvement.
At the local level, the government provides the following services: Police and Fire protection, Court systems, education, sanitation (if not privatized), basic utility services (if not privatized), parks and recreation, libraries, property zoning, social services, and road building/maintenance. These services are funded by tax payers by means of property taxes, local sales tax, bonds and…...

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