Final answer:
Tensions between the government and private enterprise arise due to different economic philosophies and priorities. The government's role includes regulation, protection, provision, consumption, and promoting national goals, leading to a mixed economy, while private enterprises focus on profitability.
Step-by-step explanation:
The question concerns why there might be tension between the government and private enterprise within an economy. The most accurate reason for this tension is 'c) Different economic philosophies and priorities'. This is because the government and private enterprises may have contrasting goals, approaches, and responsibilities. While a government might be concerned with regulatory measures, protecting consumers, addressing externalities such as pollution, or ensuring social welfare, private enterprises are often primarily focused on growth, efficiency, and profit maximization.
The economy consists of both the public sector and the private sector. The former is made up by government operations, and the latter comprises private individuals and privately owned businesses. Historically, there has been a debate over how much the government should intervene in the economy. Advocates of laissez-faire economics argue for minimal government intervention to let private markets operate efficiently, while others see a useful role for government in addressing market failures and promoting public welfare.
The real-world scenario is that neither unregulated markets nor government actions are perfect. Policymakers must consider the actual strengths and weaknesses of both markets and government when crafting economic policies.
In the United States, the government intentionally limits its intervention, acting as a regulator, protector, provider, consumer, and promoter. Its involvement signifies a mixed economy where the marketplace is modified by government regulations and laws, reflecting a balance between laissez-faire and government intervention.