Question

5. Describe the overall involvement of the government in the free enterprise system of

Answer 1

1. In the free enterprise system of the U.S. economy, the government exercises minimal involvement.

2. The three specific areas where the government plays an important role include:

• Providing the legal and social framework (laws and regulations)

• Maintaining competition (antitrust laws)
• Stabilizing the economy (The Fed).

What is a free enterprise system?

A free enterprise system ensures that there are few restrictions placed on business activities and ownership.

Governments can intervene minimally to:

• Provide public goods and services (state and local governments).
• Redistribute income (social security)
• Correct externalities in the economy.

For example, the United States government ensures that market participants do not engage in:

• False advertising
• Environmental hazards
• Unsafe products (foods and drugs, inclusive).

Thus, the government exercises minimal involvement in a free enterprise economic system.

Learn more about free enterprise systems at brainly.com/question/668263

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