The economic functions of government tend to be viewed primarily as either public spending programs or revenue-generating activities that are used to pay for public spending. Another area in which the government has a profound influence on the economy is regulation. Regulation like other government activities, can be analyzed within both a positive and a normative framework. In general, a case for government regulation can be made in instances in which the private sector of the economy could be expected to operate with less than optimal results.
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