Local, National & International

Exam code: 2281

Written by: Ashika|Reviewed by: Caroline Carroll|Updated 2 July 2026

Government Roles in a Mixed Economy

Government Roles in a Mixed Economy

Nearly every economy in the world is a mixed economy & has varying degrees of government intervention
Governments intervention is necessary for several reasons & occurs on three distinct levels
- Local intervention
- National (macroeconomic) intervention
- International intervention

The Role of Government in a Mixed Economy

Area of Intervention	Examples of Intervention	Explanation
Local	Local health services Refuse collection Parking fines Local prosecutions Parks & recreation Public services	Local governments are responsible for delivering government services on a town/regional basis They usually receive funding from the central government & are held accountable for the quality of goods/services provided by the voters in their area Local government branches are often referred to as 'councils', 'federal' or 'state'
National	Central Government Fiscal Policy Monetary Policy Supply-side Policy	Determining the best combination of policies that will help them to meet all of their macroeconomic aims
International	Exchange rate interventions Protectionism	International trade is vital to economic growth in many economies Governments have a role to both protect domestic industry & to help it compete internationally

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