A purpose of government regulation in a mixed-market economy is to protect:

• A. the economy from all forms of government intervention
• B. consumers from unsafe products and unfair practices
• C. monopolies from competition
• D. only producers' profits

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the role of government regulation in a mixed-market economy. Government regulation typically aims to correct market failures, protect public interests, and ensure fair competition.
2. Step 2: Identify the main objectives of government regulation. These often include protecting consumers from unsafe products and unfair business practices, preventing monopolies from abusing market power, and ensuring a fair marketplace.
3. Step 3: Analyze each option in the problem: (a) 'protect the economy from all forms of government intervention' contradicts the idea of regulation itself, as regulation is a form of intervention; (b) 'protect consumers from unsafe products and unfair practices' aligns with common regulatory goals; (c) 'protect monopolies from competition' goes against the typical regulatory aim to promote competition; (d) 'only producers' profits' is too narrow and not a primary regulatory purpose.
4. Step 4: Conclude that the purpose of government regulation in a mixed-market economy is primarily to protect consumers from unsafe products and unfair practices, ensuring market fairness and safety.
5. Step 5: Remember that government regulation balances the interests of consumers, producers, and the overall economy, but consumer protection is a key focus.