Question

Besides providing public goods, what two purposes can a government serve in a market economy?

Answer 1

The correct answer to this opén question is the following.

Although there are no options provided we can say the following.

Besides providing public goods, the other two purposes that a government can serve in a market economy are to enforce legislation that helps the economy and help protect the environment.

It is well-known that in a market economy, the government is a provider of public goods and services that private companies cannot be relied upon to supply, such as is the case of public infrastructure.

The government knows that in a market economy, public goods are necessary to achieve equity and growth for every competitor and company.

In a free-market economy, individuals promote capitalist ideas to invest money and create companies in order to be rich.