Roles within the Market Economy

Within the market economy, the CONSUMER, PRODUCER/ENTREPRENEUR, and GOVERNMENT have specific roles.

ROLE OF THE CONSUMER
- the consumer has consumer sovereignty (They have ultimate power in the economy)
- they decide which businesses succeed and which fail.
- they decide which products succeed on the market
- provide feedback and opinions to producers

ROLE OF THE PRODUCER / ENTREPRENEUR
- manage the factors of production (land, labor, capital)
- encourages new businesses to enter the market
- keep prices down through the use of competition

ROLE OF THE GOVERNMENT
- Regulator: regulates business by passing acts and laws
- Protector:  protects consumers from unsafe business practices by monitoring business
- Consumer:  buys goods and services
- Provider:  Provides servicdes (education, military, public works, etc)
- Promoter: of the national good