How does a market economy interact with political systems? 🔊
A market economy interacts with political systems by relying on government regulation to ensure fair competition and consumer protection while fostering economic growth. In a market economy, supply and demand dictate prices and production, yet political structures play a critical role in shaping economic policies, trade regulations, and business practices. Governments may implement taxes, tariffs, and social welfare programs to balance the benefits of a free market with social equity. The relationship between market economies and political systems influences overall societal outcomes and can affect the prosperity of citizens.
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