Government's role in a market economy is:
Let's understand what a market economy is about.
Market Economy
A market economy is known to be an economic system whereby decisions and pricing are actually guided and regulated by individual citizens and businesses. In other words, a market economy more market oriented.
It's important to note that though the role of government in this type of market is limited, yet government's role is important. The government help to intervene in certain situations and also for central planning.
In a market economy, entrepreneurs have the freedom to pursue profits. They can do this by creating outputs that are more valuable.
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