Which of the following would not be considered a role of the government?
A)promoting competition
B)providing public goods
C)providing externalities
D)regulating natural monopolies
E)safeguarding private property and enforcing contracts

Question

Quizplus · Accepted Answer

Providing externalities is not a role of the government. Externalities are the unintended consequences of market transactions, such as pollution, that affect third parties. However, the government can address externalities through policies like taxes on pollution or subsidies for clean energy. The other choices, promoting competition, providing public goods, regulating natural monopolies, and safeguarding private property and enforcing contracts, are considered roles of the government in a market economy.

Which of the Following Would Not Be Considered a Role