When the government enforces contracts between two parties, it is acting in its role to promote economic growth by

Question

Quizplus · Accepted Answer

Enforcing contracts is a necessary aspect of ensuring a stable legal system, which in turn promotes economic growth. When parties have confidence that their contracts will be enforced by the government, they are more likely to enter into agreements and engage in economic activity, leading to greater economic growth. Providing physical and human capital, ensuring a stable and secure financial system, and promoting free and competitive markets are also important roles of the government in promoting economic growth, but they are not directly related to enforcing contracts between two parties.

When the Government Enforces Contracts Between Two Parties, It Is