Question

Martin was studying the role of government in the market economy. He knows that supply and demand define how the market works, but the government also participates in the economy in many ways. What is one responsibility of government in a market economy?

(1 point)

Protect private property and preserve our security


Provide everyone a food stipend


Distribute medicine needs to those who are sick


Encourage economic recessions

Answer 1

Protect private property and preserve our security

Government's role in a market economy includes enforcing property rights, contracts, and providing security/public goods so markets can function.