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Within a free enterprise system, the government is expected to

A.
bail out large corporations that are facing bankruptcy.
B.
distribute wealth equally among the different classes in society.
C.
consolidate wealth into a small percentage of the population.
D.
keep its involvement in business activity to a minimum.

1 Answer

1 vote

Final answer:

The government is expected to keep its involvement in business activity to a minimum within a free enterprise system. It regulates to ensure fair competition, provides essential services, protects consumers, and promotes national economic goals, all while fostering a mixed economy.

Step-by-step explanation:

Within a free enterprise system, the government is expected to keep its involvement in business activity to a minimum. This minimally invasive approach is central to the concept of free enterprise, which emphasizes the ability of individuals and businesses to operate with a high degree of freedom from government intervention. In the United States, the government fulfills several roles such as regulator, protector, provider, consumer, and promoter, all while striving to maintain a balance that allows the free market to function effectively without disproportionately favoring any particular segment of society.

The U.S. government serves as a regulator by ensuring competition in the market and as a protector by enforcing laws to prevent the exploitation of consumers. As a provider, it offers essential services like national defense, public education, and welfare. The government also purchases goods from the private sector, fulfilling its role as a consumer. By promoting national economic goals, it seeks to sustain the vitality of the free enterprise system. Despite these roles, the overarching expectation is to promote a business environment conducive to economic growth, competition, and innovation with limited government interference, thereby emphasizing the importance of a mixed economy where both public and private sectors have a role to play.

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