Moderate

In essence people need government because________________?

Correct answer: A. they live in groups and need a degree of order

  • A. they live in groups and need a degree of order
  • B. of their competitive nature
  • C. they have not reached a sufficient amount of civilization to exist without it
  • D. brute force is not sufficient keep them in line

Explanation

Because people live collectively, they need institutions that establish rules, settle conflicts, and maintain a basic level of order. Competition alone does not explain the fundamental need for government.

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Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.

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