Question

What is the important role of the government in market economies? A. to control prices and costs B. to prevent monopolies and collusion C. to provide luxury items D. to market goods and services

Answer 1

B. Because the government can't and shouldn't control the prices of items or which items and services are sold, they should lay down the ground rules of trading, buying, and selling, so that they Can prevent monopolies and collusion.

Answer 2

I think the correct answer from the choices listed above is option B. The important role of the government in market economies is to prevent monopolies and collusion. They do this by making and implementing regulations which pertains to the economy to control the market indirectly.