1. What does our government do with tax money?

How does government

affect the business cycle? Income distribution?

The government uses tax money for healthcare, social security,

military, education programs. The government would use it for
medical research and development or help people who can’t afford
medicine. Many unemployed people, retired workers would benefit
from it. Government can also set monetary standards, insure bank
deposits, control the interest rate. It also sets the anti-trust law to
encourage competition. For the income distribution, the government
collects tax to distribute to the less unfortunate people.

2. Who set the rules for our economic system? Identify the different types
of laws that are in place to protect our economic system

The government sets the rule for our economic system. The
government sets anti-trust (or anti-monopoly) laws to encourage
competitions and ensure the benefits for citizens because if the
monopoly happens then the corporation can regulate the price and
the citizens might have to pay a high price. Also because of no
competition so it won’t push them to create more products to attract
customers and the market will lack a variety of products..

3. Explain the purpose of anti-monopoly laws. You may need to refer to

your additional resources or conduct an internet search. Give specific
examples.

The purpose of the anti-law is to protect the competition for the

customers’ benefits, and ensure that there are strong incentives for
businesses to operate efficiently, keep prices and quality up. The
Sherman Act outlaws “ every contract, combination or conspiracy in
restraint of trade and any “monopolization, attempted monopolization
or conspiracy or combination to monopolize”. For example, if all big
names in telecommunication companies like Verizon, AT&T, Sprint,
T-Mobile decide to come together and form just one company then
the telecommunication market would pretty much become a
monopoly. Customers would not have much choice when it comes to
choosing a phone provider.

4. What is income redistribution? Be specific and provide at least three

examples.
 Income redistribution is sharing wealth with less fortunate people.
The government collects taxes from the citizens to distribute to those
in need. The government will open programs like food stamps, social
security, aid to families with dependent children. Those programs are
funded by tax and to help the less fortunate people.

5. Through your own experience, by watching the national news, or by

reading a newspaper, identify at least 10 ways our government spends our
tax money. Identify at least three ways that you benefit from this spending.
Be specific.

-Social security: Dependent children, retired workers, unemployed peole

are beneficial from it.

-Healthprogram: The taxes will fund for program like:Medicare, Medicaid,

Children’s insurance

-military: The tax helps pay for national defense and security related
program.

-interest on national debt:the tax helps pay for the debts that the
government borrow.

-veteran benefits:The government helps the veteran to pay for their

healthcare.

-food and agriculture benefit:To fund for program like: Supplemental

Nutrition, National School lunch

-education program:Pay for education program from elementary to high

school.

-infrastructure: to build bridges, fix roads

-run government: to pay for the workers in government

-science: to pay for the experiment fee

I got benefits from education the most since I’m a student. I don’t have to
pay from elementary to high school and for the college fee in state the fee
is low too. The second is health program , I have insurance and I don’t
have to pay for clinic fee. Also I got benefit from social security because I’m
dependent children so the government also aid for my parents in form of
tax deduction.

“7 Ways the Government Spends Your Tax Money.” Ramsey Solutions, Ramsey Solutions, 25
Feb. 2021, www.ramseysolutions.com/taxes/frustrating-ways-government-wastes-tax-
money. 

“The Antitrust Laws.” Federal Trade Commission, 15 Dec. 2017,

www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/antitrust-laws.