PRC-3 · Chapter 1 · Question 59 of 61
Why does a national government generally encourage the formation and growth of private businesses in a free-market system?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Because businesses create employment, serve consumers, and contribute to GDP through taxes
Explanation
Governments act as stakeholders because successful businesses reduce unemployment, satisfy consumer needs, and generate vital tax revenues that fund the state.
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