Question

Using complete sentences, describe the reason why governments get involved in the economy

Answer 1

Explanation:

Most of the world’s largest economies today are capitalist; that is, they are systems allowing individuals and businesses to own property and compete with one another in the pursuit of profits and economic well-being. In a capitalist economy producers and consumers make countless individual decisions that together add up to the bigger economic picture. No central authority dictates what goods and services companies produce or sets prices for those goods and services. Instead, the competing forces of sellers (supply) and buyers (demand) result in prices that ultimately dictate what will be produced, how it will be produced and distributed, and who will enjoy the fruits of this production and distribution.