GOVERNMENT SECTOR: The basic macroeconomic sector that includes all levels of government, including federal, state, and local. The primary function of the government sector is to force resource allocation decisions that might not otherwise be made by the rest of the economy. This is one of four macroeconomic sectors. The other three are household sector, business sector, and foreign sector. See also | government | public sector | private sector | government purchases | taxes | government borrowing | government functions | good types | market failures | public choice | household sector | business sector | foreign sector | circular flow |
