Question

Which activity is undertaken by the State (Government)?

Options

• Produces goods and services and sells them for profit while facing risk and uncertainty

• Frames and enforces laws, delivers justice, undertakes production, collects taxes and spends on infrastructure, education and health services

• Sells domestic goods to the rest of the world and moves domestic capital to foreign countries

• Consumes goods and services, saves part of income, and earns wages, salaries, profits, rent and interest

Answer 1

The State (Government) frames and enforces laws and delivers justice. It also undertakes production, collects taxes, and spends on infrastructure, education and health services.