Question

Why might a government intervene in a market economy during times of war? to increase profits to mobilize resources quickly to convert private property to state-owned property to start a communist revolution

Answer 1

The correct answer is B) to mobilize resources quickly.

A government might intervene in a market economy during times of war to mobilize resources quickly.

although a country operates under a Capitalist economy, during times of war the system can be adjusted.

In the free-enterprise system, the federal government has minimum regulation of the economy. The free market is the main component of Capitalism where owners can be as rich as they can, and employees can benefit from bonuses and other incentives.

However, during a war, the government needs to mobilize resources quickly to send weaponry and supplies to the war front. That is why it can intervene in the economy. Indeed this was what happened in the United States during World War I and World War II.