Fuctions of Government in the Market Economy

648 Words Feb 18th, 2018 3 Pages
The five functions consist that governments provide framework for legal or social, sustain the competition, support public services, national protection, income and social welfare, and stabilize the economy. When markets and policies are functioning incorrectly the government provides support to help correct situations when the market fails. As well as, managing the overall pace of economic activity, striving to maintain a consistent growth, increase employment, and price stability. By applying and utilizing the fiscal policy which monitors spending and tax rates, or also the monetary policy which manages the supply of money and how to manage the use of credit. This can either speed up the growth of the economy's rate or slow it down. Which affects price levels and can increase or decrease employment as well. Therfore, the government is needed to keep the economy afloat. The government establishes and protects the rights to private property by having a social and legal framework in in the market economy. This protection of private property is inadvertently for the land of people; such as, factories, stores, and land. The protection also extends to substance considered intellectual property. The exclusive rights for intellectual property consists of copyrights and patents. Copyrights unsure that books, music, films, software, etc. are all under protection. Patents, on the other hand,…