In a pure market economy, the role of the government is to:

Question

Quizplus · Accepted Answer

In a pure market economy, the government's role is limited to defining and enforcing private property rights, protecting contracts, and creating a legal framework that supports free trade among individuals and businesses. This ensures that assets are owned and controlled by the individuals who have the greatest incentive to use them productively, and that economic transactions occur efficiently and transparently. The other options, such as regulating markets or redistributing income, involve government intervention that would be inconsistent with a pure market economy.

In a Pure Market Economy, the Role of the Government