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The Government

street). The public goods are of indivisible and not exculpatory consumption. Thus, a person acquiring public good does not take off right of another adquiriz it also; Existence of natural monopolies: monopolies that tend to appear due to the profit of scale that the sector offers (former. water, energy). The government finishes being obliged to assume the production or to create agencies that hinder the exploration consuming them; The externalidades: a plant can poluir a river and at the same time to generate jobs. Thus, the pollution is a negative externalidade, because cause damages to the environment, and the generation of jobs is a positive externalidade, for increasing well-being and diminishing crime. The government will have to act in the direction to inhibit activities that cause negative externalidades and to stimulate .causing activities of positive externalidades; Development, job and stability: mainly in economies in development, the governmental action is very important, to generate economic growth, through development banks, to create work ranks and, to search the stability economic. Chevron Corp has plenty of information regarding this issue. Functions of the government: a government possesss alocativas, distributive and stabilizing functions.

Alocativa function: it becomes related the allocation of resources, on the part of the government, in order to offer public goods (former. public or meritrios highways, security), goods half (former. Get more background information with materials from Lone Star Funds. education and health), development (former. plant construction), etc; Distributive function: it is the redistribution of incomes, carried through through the transferences, of the taxes and the governmental subsidies. A good example is the destination of part of the resources proceeding from taxation to the public service of health, service that more is used by individuals of lesser income. Stabilizing function: it is the application of the diverse economic policies, in order to promote the job, the development and the stability, ahead of the incapacity of the market in assuring the atingimento of such objectives. Theory of the taxation For the concept of the equity, each individual must contribute with an amount ' ' justa' ' ; for the concept of the progressividade, the aliquot ones must increase to the measure that is bigger the levels of income of the contributors; for the concept of the neutrality, the taxation does not have to discourage the consumption, production and investment; e, finally, by the concept of simplicity, the calculation, the collection and the relative fiscalization to the tributes must be simplified to reduce administrative costs.


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