Explain the role of government in a mixed economy.

World Economic Systems Questions



80 Short 69 Medium 80 Long Answer Questions Question Index

Explain the role of government in a mixed economy.

In a mixed economy, the role of government is to regulate and intervene in the market to ensure fairness, stability, and economic growth. The government plays a crucial role in providing public goods and services, such as infrastructure, education, healthcare, and defense. It also enforces laws and regulations to protect consumers, workers, and the environment. Additionally, the government may implement fiscal and monetary policies to manage inflation, unemployment, and overall economic stability. Overall, the government's role in a mixed economy is to strike a balance between free market principles and social welfare objectives.