Question

characteristics of a market system quiz
economics / module 1: basic economic concepts

1. government’s role in a market economy is ______.

○ expansive
○ null
○ limited
○ pervasive

Explanation:

In a market economy, the government's role is not extensive (so not "expansive" or "pervasive") and not non - existent (so not "null"). Instead, it has a limited role, mainly focusing on functions like enforcing property rights, providing public goods, and regulating to correct market failures.

Answer:

C. limited