To what extent do you think the government should be involved in the free enterprise economy?
Defend your answer.
The government’s involvement in the free enterprise economy should be strictly limited.
However, the government might intervene to do the following:
1- to ensure that income is distributed equally within society.
2- to regulate monopoly acts and unfair business practices that hinder competition in markets.
3- to overcome market failure.
4- to impose taxes on businesses and do tax reformation.
5- to apply the fiscal and monetary policy in times of recession.
6- to apply automatic stabilizers.
7- to enhance infrastructure.
8- to provide supports and assistance to unemployed people.