Governments role in the free market economy


Although most people agree that the government's role in the free market economy should be limited, the degree of appropriate government involvement is contested. Under what circumstances should the government bailout a failing business? Explain and cite a specific example to illustrate your reasoning.

Some people might argue that the reason the government has to manage cost and benefit externalities is that people are basically selfish. Explain the reasoning of that statement. Do you agree or disagree? Explain why.

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Microeconomics: Governments role in the free market economy
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