Question

What are three roles of government in a mixed economy? For each role, explain whether you view this involvement as positive or negative, and why.

Answer 1

Maintain framework, provide public goods and services, maintain competition, redistribute income, stabilize the economy

Explanation:

The economy that has the combination of command, market and also traditional economy refers to mixed economy. The major roles of the government in the mixed economy includes, maintaining social and legal framework, providing public goods and services, competition maintenance, redistribution of income and stabilization of economy.

In the first role of maintaining social and legal framework is positive. This will help customers and the sellers to abide within law and helps them in safety maintenance. The second one is the providing public goods and services. this is also positive because one person can use services and no person can demand that that particular service or product belongs to him. Next one maintaining competition also is positive in nature because it gives people many choice from which they can choose products and also they will be offered lower price.