CXC Principles of Business Exam guide: Section 8: The Role of Government in an Economy

CXC CSEC Principles of Business Exam guide: Section 8: The Role of Government in an Economy

CXC CSEC Principles of Business Exam Guide


Profile 3: The Business Environment

Section 8: The Role of Government in an Economy


The students should be able to:


Outline the responsibilities of government in an economy;

Responsibilities of government in an economy:

(a) security of the State;

(b) protection and general welfare of citizens;

(c) job security and severance benefits to workers;

(d) protection of the environment

(e) maintenance of a safe environment for investors


2. Identify ways by which business could protect the environment;

Adherence by business to laws, including laws governing taxation, labour and the environment.


Describe measures used by governments to protect consumers;

Consumer protection legislation, including regulations on price controls, food and drug standards, hire purchase legislation.


Identify ways by which government regulates business activity;

For example, by divising laws related to zoning and the disposal of waste.

5. State the purposes of taxation;

The role of taxes in raising revenue, income distribution,and control of spending.

6. Distinguish between direct and indirect taxes;

Direct taxes and indirect taxes.


Distinguish between progressive, regressive and proportional taxation;

Concepts of progressive, regressive and proportional taxation.

8. Outline forms of assistance offered by government to business;

Forms of government assistance to business, including institutions for lending capital, training and technical assistance, research and information centres, subsidies and grants.


Evaluate the impact on the country with respect to social services provided by government.

Impact of socal services provided by government:

(a) healthcare - a healthy population

(b) National Insurance Scheme -provision and      security for the elderly;

(c) education - an informed and literate      population;

(d) roads and transportation - access to goods and      services


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channy's picture
channy (not verified)

what are the ethical issues in a business

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