ROLE OF GOVERNMENT IN A MARKET ECONOMY
ROLE OF GOVERNMENT IN A MARKET ECONOMY
Discussion
With a partner, brainstorm ideas about what the government
should do or what funcHons the government should perform in our
economy
(create a wriKen list)
Role of Government in a Market Economy
-Govt has a LIMITED role
- In market economies, most decisions are made by individual consumers and producers/privately owned businesses
- LAISSEZ-FAIRE (leave to do)
Role of Government in a Market Economy
There ARE some roles the government plays in market economies...
Role of Government in a Market Economy
1) Provide a legal system to make and enforce laws and to protect private property rights
2) Provide public goods that individuals or private businesses would not provide
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