Which of the following best describes the original intentions of government involvement with business in an economic system?

• A. To maximize government profits from private enterprises
• B. To ensure that businesses operate without any restrictions or oversight
• C. To regulate business practices to protect consumers and promote fair competition
• D. To eliminate all private ownership and establish a command economy

Answer: (C)

Verified step by step guidance

1. Understand the role of government in an economic system, which typically involves creating rules and regulations to ensure the market functions efficiently and fairly.
2. Recognize that maximizing government profits from private enterprises is not the primary goal of government involvement; rather, governments usually aim to balance interests between businesses and consumers.
3. Consider that allowing businesses to operate without any restrictions can lead to market failures, such as monopolies or exploitation, which governments seek to prevent.
4. Identify that one of the main original intentions of government involvement is to regulate business practices to protect consumers from unfair practices and to promote fair competition among businesses.
5. Note that eliminating all private ownership and establishing a command economy is a characteristic of a different economic system, not the typical role of government in a market or mixed economy.