The government establishes the rules of the game for economic transactions in order to
A)Legitimatize and enforce contracts.
B)Discourage the production of capital.
C)Discourage the ownership of property.
D)Encourage spillover costs.

Question

Quizplus · Accepted Answer

The government establishes rules in order to legitimize and enforce contracts. This provides stability and security for economic transactions and promotes economic growth. The other answer choices (B, C, and D) are not true statements about the purpose of government intervention in the economy.

The Government Establishes the Rules of the Game for Economic