The economic functions of the state

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different types of economies in the state plays an active role in shaping the market of macroeconomic processes.It implements the political, social and economic principles of civil society.

economic functions of government in a market economy, as a rule, is to regulate the weaknesses of the market mechanism - in cases where there is no self-correct the situation or when there is exposure to market inefficiencies.In such cases, the state creates equal conditions for competition of entrepreneurs by limiting the power of monopolies.It takes care of the production of the necessary amount of goods and services in cases where the market mechanism can not meet adequately the needs of the population.

Economic functions of the state are manifested in a socially equitable distribution of income, which does not provide a market.The state is obliged to take care of the elderly, the poor, the disabled.It should pay attention to the scope of the fundamental scientific research.This need arises from the reluctance of businesses to engage in this issue because of the high risk, high cost of emergency and the lack of a quick profit.

Economic functions of the state lies in the regulation of the labor market.State authorities are taking measures to prevent and reduce unemployment, as the market has the right to work is not guaranteed.

economic objectives and functions of the state

The main functions of the state in the economy include:

1. Create legislation to make economic decisions.State agencies develop and adopt laws that regulate the activities of organizations and enterprises of different ownership forms, as well as entrepreneurs, define the duties and rights of citizens.

2. Maintenance of economic stability.With credit, monetary, budgetary and fiscal policy, the state shall take measures to prevent the decline in production, reduction of unemployment, inflation, smoothing, keeping the national currency and a stable price level.

When failure of the market mechanism to support structural and macroeconomic balance in these processes interfere with the state.

Economic functions of the state is generating development strategy, the formation of business and investment climate, and social environments of the economy.

State organizes the production of goods and services that the private sector does not pay attention.It creates the conditions for the successful development of communications, transport, agriculture, engaged in the definition of spending on science and defense, implements development programs and forms of health and education.

Government agencies provide social protection and provide social guarantees, which are to determine the minimum wage, the payment of pensions for disability, old age, unemployment benefits and various kinds of assistance to the poor.

With the support of the state is carried out in the external world of national business, coordinates its activities to improve the competitiveness of the domestic economy in the global economy.The State shall take measures to counter the threats of instability factors and provides economic security at a proper level to maintain the defensive capability.

addition to the general principles of the economic functions of the state are manifested in the regulation of specific areas and sectors of the economy, as well as its development in certain regions of the country.