The government should therefore, play a very vital role in economic development. These two limits about the role of government are often referred to as Capitalism and Socialism. 45 0 obj <>/Filter/FlateDecode/ID[]/Index[14 59]/Info 13 0 R/Length 134/Prev 186935/Root 15 0 R/Size 73/Type/XRef/W[1 3 1]>>stream 1. A market economyis a system in which the supply and demand for goods and services plays a primary role in a competitive marketplace. This content was COPIED from - View the original, and get the already-completed solution here! Plus, get practice tests, quizzes, and personalized coaching to help you All other trademarks and copyrights are the property of their respective owners. Providing the economy with a legal structure: This is the first and most important function a government should provide and without it an economy may collapse. 1. of the six roles of government listed: a) Providing a stable institutional framework; b) Promote effective and workable competition; c) Correct for externalities; d) Ensure for economic stability and growth; e) Provide for public goods; f) Adjust for undesired market results. Why is it not always possible for the governmen, Working Scholars® Bringing Tuition-Free College to the Community.