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What are examples of the US government indirectly impacting the economy without being in direct competition with private business? Choose all that apply

A. Providing social security benefits to retirees
B. Regulating gas and electric public utility companies
C. Owning and operating the United States Postal Service
D. Owning and operating the Federal Deposit Insurance Corporation

User Ludonope
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Final answer:

The US government indirectly impacts the economy by (A) providing social security benefits and (B) regulating public utilities, both of which do not involve direct competition with private businesses. These actions contribute to a mixed economy, where the government has a regulatory and protective role.

Step-by-step explanation:

Examples of the US government indirectly impacting the economy without being in direct competition with private business include:

  • Providing social security benefits to retirees, which injects money into the economy as the beneficiaries spend their benefits.

  • Regulating gas and electric public utility companies, by controlling rates and standards to protect consumers and ensure the smooth operation of the marketplace.

Both A and B are examples of how the government influences the economy indirectly without being directly involved in the marketplace. Option C, owning and operating the United States Postal Service, and Option D, owning and operating the Federal Deposit Insurance Corporation (FDIC), are actually examples of direct government involvement in the economy, as these are entities that provide goods or services in competition with private businesses. Nonetheless, the regulatory role of the FDIC could be seen as an indirect influence on the economy as well.

The United States government plays both direct and indirect roles in the economy, maintaining a mixed economy where it regulates, protects, provides, consumes, and promotes various economic activities.

User Kathan Shah
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