Final answer:
Government's role in consumer protection through regulation and provision of services justifies the costs involved, as it leads to the overall benefit of the nation, including better or cheaper products, increased business profits, and higher incomes for employees.
Step-by-step explanation:
The cost of government intervention in a free enterprise system is a topic that underscores the balance between enabling market freedom and ensuring consumer protection. The statement posits that the expenses associated with government oversight are justified by the protection it provides to consumers, which can be deemed true. The government plays several roles such as regulator, protector, provider, consumer, and promoter within the economy to safeguard the interest of the public, ensure fair competition, and provide essential services like national defense and public education, that private entities may not supply adequately or equitably.
Moreover, government imposed taxes on businesses are used to improve product safety, reduce environmental harm, and expand services, ultimately leading to the production of better or less expensive products for consumers. This results in increased profits for businesses, higher incomes for their employees, and on the whole, the benefits to the nation can outweigh the costs. Additionally, public goods, like police and fire services, showcase services that the government uniquely provides, which would be logistically and economically challenging for private sectors to do on a fair and comprehensive basis.