Question

Mention two ways by which the government regulates the functioning of a market economy?

Answer 1

Four Main Functions of Government in a Market Economy:

However, according to Samuelson and other modern economists, governments have four main functions in a market economy — to increase efficiency, to provide infrastructure, to promote equity, and to foster macroeconomic stability and growth.

Answer 2

Answer:

Four Main Functions of Government in a Market Economy:

However, according to Samuelson and other modern economists, governments have four main functions in a market economy — to increase efficiency, to provide infrastructure, to promote equity, and to foster macroeconomic stability and growth.