EconomicsByComics by Po-Wei Lee

Governments & Markets

Introduction: In a market economy, the four basic roles of the government are to improve efficiency, supply infrastructure, advance equity, and encourage macroeconomic stability and growth. However, governments can impose tariffs, which add taxes to imported goods, or subsidies, which raise prices and improve the appeal of indigenous goods by taxing the public and transferring the money to the industry. Increased taxes, levies, and regulations might stymie businesses or entire industries.