Which role does the government play in a free enterprise system?

The options of the question are, A) it passes economic laws and regulations. B) It produces goods and services. C) It discourages business competition. D) It competes for labor.

The correct answer is A) it passes economic laws and regulations.

The role that the government plays in a free Enterprise system is “it passes economic laws and regulations.”

In a free Enterprise system, the government supports private companies and people to invest its money to create a free market. The government then provides the economic scenario that allows companies to invest money in projects that generate important gains for them and create jobs. The government passes economic laws and regulations in order to have a fair competition between the companies and the market. This scenario helps the economy to grow.  

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