The role of government in a market system
A)includes encouraging market failures.
B)does not exist.
C)is restricted to establishing property rights.
D)includes improving situations that would otherwise result in a government failure.
E)includes improving situations that would otherwise result in a market failure.

Question

Quizplus · Accepted Answer

The role of government in a market system includes improving situations that would otherwise result in a market failure. This includes providing public goods, regulating externalities, correcting natural monopolies, and redistributing income. The government's role is to ensure that the market operates efficiently and that the benefits of the economy are distributed fairly.

The Role of Government in a Market System