Economics Capitalism Questions
In a capitalist economy, the role of the government is primarily to ensure the functioning of a free market system by establishing and enforcing laws and regulations. The government's role includes protecting property rights, enforcing contracts, promoting competition, and providing public goods and services that are not efficiently provided by the private sector. Additionally, the government may intervene to address market failures, such as externalities or monopolies, and to promote economic stability through monetary and fiscal policies. However, the extent of government intervention can vary depending on the specific form of capitalism practiced in a country.