How Does

The United States Government...

1.) Promote and secure competition in a market economy?

"Since competition is the optimal and efficient market mechanism that encourages producers and resource suppliers to respond to price signals and consumer sovereignty, the government should fight monopoly power and non-competitive behavior. Thus, anti-monopoly laws (Sherman Act of 1890; Clayton Act of 1913) are designed to regulate business behavior and promote competition. It is important to mention here that Microsoft was found guilty of violating these laws in 2000." -Hassan Y. Aly, professor of economics at The Ohio State University at Marion.

2.) Protect private property rights in a market economy?

Several government policies adopted during the Founding era contributed to the understanding of property ownership.

Policy #1. Government must define with precision what constitutes ownership of property.

- Why do you own this land?

Policy #2. There must be few restrictions on the use of property.

-You can't do something crazy on the property.

Policy #3. Government must encourage widespread ownership.

-There shouldn't be a bunch of underutilized land going to waste.

Policy #4. Government, through civil and criminal law, must protect property owners against harm to property by fellow citizens or by foreign nations.

- You break it, you pay for it.

Policy #5. Government must protect property owners against harm to property by government itself.

-The city isn't allowed to come and disrupt your property to enhance the property of the City.

Following these policies help to protect the property rights.

3.) Promote equity in a market economy?

Equity is promoted in a market economy by requiring all taxes being paid for a good or service to be the same in that area whether it be city or county. example: everybody that buys something from a gas station must pay the same tax percentage.

4.) Provide public goods and services in a market economy?

Providing goods and services in a market economy creates jobs for its population and creates a prospering economy. Such things as sanitation engineers, police officers, and post office attendants are employed by the government and create prosperity.

5.) Resolve externalities and other market failures in a market economy?

The government can correct the failure by fiscal policy (eg. taxation, govt. spending and govt. borrowing); monetary policy (eg. changes in interest rates); wages policy (eg. basic award conditions and minimum wages provide a safety net); external policies (eg. to reduce tariffs) or microeconomic reform.

6.) Stabilize and promote growth in a market economy

They encourage healthy competition and entrepreneurship in a market economy to allow growth in the economy as well as giving consumers more options.

7.) Use regulations and deregulation policies to affect consumers and producers in a market economy?

Making sure that the producers are treating the consumers with fairness and respect.

Works Cited

Aly, Hassan Y., Professor. "The Role of Government in a Market Economy."Marionstar.com. Web. 3 Feb. 2016


"The Economic Principles of America's Founders: Property Rights, Free Markets, and Sound Money." The Heritage Foundation. Web. 04 Feb. 2016.