Political Economy Economic Systems Questions
In a mixed economy, the role of government is to strike a balance between the free market and government intervention. The government plays a crucial role in regulating and overseeing economic activities to ensure fair competition, protect consumer rights, and maintain social welfare. It establishes and enforces laws and regulations to prevent monopolies, promote competition, and safeguard public interest. Additionally, the government provides public goods and services such as infrastructure, education, healthcare, and social security. It also implements fiscal and monetary policies to stabilize the economy, control inflation, and promote economic growth. Overall, the government's role in a mixed economy is to create a favorable environment for businesses to thrive while ensuring social welfare and economic stability.