A Purpose Of Government Regulation In A Mixed-Market Economy Is To Protect?

A Purpose Of Government Regulation In A Mixed-Market Economy Is To Protect?

Answer:

The role of the government in a mixed-market economy is to act as a babysitter of society in a way that it has to safeguard the interests of consumers, workers, and the environment.

In a mixed market, economy somewhere between the free market economy and a command economy that is based on both demand and supply as well as government interferences, protective regulations have a significant role to play in protecting different stakeholders from any form of abuse or negligence. These regulations are designed to work as a compromise between people’s liberty in economic affairs and their accountability for certain consequences.

It should be noted that the primary area that the government deals with in regulation is consumer protection. For instance, legislation in the food industry safeguard measures guarantee that food items in the markets meet some health and hygiene requirements. The Food and Drug Administration popularly known as FDA in the US regulates provisions of food and drugs to ensure that a particular product is healthier for consumption and carries the right label. Likewise, financial regulations ensure consumers are shielded from high risks of getting into high-risk products or being duped into investing their monies in a certain business.

Another area of regulation that can be observed is the protection of workers. They are codes of practices that legislate for employees and give the minimum wage, standard working conditions and number of working hours. OSHA is an agency in the U. S with a mandate to regulate and enforce the adoption of safety standards in workplaces as a way of minimizing cases of work-related accidents and promoting employees’ safety and health.

Measures concerning the protection of the environment are meant for the preservation of the physical capital in the natural environment and for minimizing pollution levels. The major functions of the EPA include; establishing rules about emissions standards, water quality, and the disposal of wastes this is besides overseeing the poisoning and pollution standards of industries.

Such regulations assist in solving market failures and other externality issues that may otherwise not be noticed in a free economy. Whereas, concerning the mixed-market economy, while safeguarding the interest of the consumers, workers, and the environment, the government regulations seek to enhance the welfare of society besides encouraging the process of economic growth and change.