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Public Sector Government Role

Illustrate the Public Sector Government’s Role of providing the legal structure?

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1. Government ensures property rights, provides enforcement of contracts, acts as a referee and imposes penalties for foul play.

2. Government intervention improves the allocation of resources by supplying a medium of exchange, ensuring product quality, defining ownership rights, and enforcing contracts.

3. These interventions widen the market and foster greater specialization in the use of property and human resources.

4. The appropriate amount of regulation is at the level where the marginal benefit and marginal cost are equal.

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