Government can reallocate resources of an economy through taxes, transfer payments, and by providing direct services. Direct services are those offered by workers or volunteers who have regular touch or interaction with clients.
Government house maids perform direct services in your home. When you go shopping, the assistance provided by the shopkeeper is an example of direct services.
There are two types of service: direct and indirect. Direct service is service that is paid for directly by those who receive it. People who are willing to pay for their services are served by direct service providers. In contrast, indirect service is a government-funded service provided to the broader population.
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