Question

Explain the role played by consumers , business and government in a market economy

Answer 1

Good Morning!

In a market society, also known as "capitalism," the roles are very clear. Consumers have the role of effecting the consumption of products or services, thus acting as a thermometer for the market since it is from the tastes and options of the population that the market must be guided. The market, then, is the one that meets the demand and produces in order to raise customers and realize sales. The government is a manager, but should not interfere much with the functioning of the market. The government must manage and prevent unfair competition, harness currency strength and international competition.

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