In a Pure Market Economy,the Role of Government Is Limited

question 65

Multiple Choice

In a pure market economy,the role of government is limited to provision of : i) a basic legal and institutional structure.
Ii) intervention in the allocation of resources in some areas of the economy.
Iii) redistribution of income.
Iv) stabilization of economic conditions generally.
Which of the above points is true?

• A)Only i).
• B)Only i)and ii).
• C)Only i)and iv).
• D)Only i),ii),and iv).
• E)All of the points are provided by government in a pure market economy.

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