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Consumers and producers obviously make decisions that mold the economy, but there is a third major 61 to consider the role of government. Government has a powerful 62 on the economy in at least four ways:
Direct Services. The postal system, for example, is a federal system 63 the entire nation, as is the large and complex establishment. Conversely, the construction and 64 of most highways the 65 of the individual states, and the public educational systems, despite a large funding role by the federal government, are primarily 66 for by country or city governments. Police and fire protection and sanitation 67 are also the responsibilities of local government.
Regulation and Control. The government regulates and controls private 68 in many ways, for the 69 of assuring that business serves the best 70 of the people as a whole. Regulation is necessary in areas where private enterprise is granted a 71 , such as in telephone or electric service. Public policy permits such companies to make a reasonable 72 , but limits their ability to raise prices 73 , since the public depends on their services. Often control is 74 to protect the public, as for example, when the Food and Drug administration bans harmful drugs, or requires standards of 75 in food. In other industries, government sets guidelines to ensure fair competition without using direct control.
Stabilization and Growth. Branches of government, including Congress and such entities as the Federal Reserve Board, attempt to control the extremes of boom and bust, of inflation and depression, by 76 tax rates, the money supply, and the use of credit. They can also 77 the economy through changes in the amount of public spending by the government itself.
Direct Assistance. The government provides many kinds of help to 78 and individuals. For example, tariffs 79 certain products to remain relatively free of foreign competition; imports are sometimes taxed so that American products are able to 80 better with certain foreign goods. In quite a different area, government supports individuals who cannot adequately care for themselves, by making grants to working parents with dependent children, by providing medical care for the aged and the indigent, and through social welfare system.
61.A.economy B.horror C.magnifier D.element
62.A.elevation B.emotion C.effect D.election
63.A.dripping B.serving C.diverging D.clamping
64.A.clearance B.combustion C.commence D.maintenance
65.A.commonplace B.responsibility C.conductivity D.consequence
66.A.consoled B.compacted C.paid D.bracketed
67.A.services B.boycotts C.budgets D.charters
68.A.banquet B.boom C.arena D.enterprise
69.A.assertion B.purpose C.asset D.assumption
70.A.admiration B.interests C.adoption D.accuracy
71.A.monopoly B.acceptance C.abolition D.morality
72.A.proximity B.blend C.breast D.profit
73.A.fairly B.unfairly C.friendly D.unnecessarily
74.A.exercised B.broadened C.bankrupted D.exemplified
75.A.faculty B.quantity C.quality D.fragment
76.A.applauding B.assessing C.ascending D.adjusting
77.A.affect B.accommodate C.adhere D.affirm
78.A.beverage B.businesses C.bondage D.botany
79.A.perplex B.permit C.perturb D.plunder
80.A.compensate B.confront C.console D.compete