How do governments support a capitalist economy?

Which of the following is NOT a way that governments support a capitalist economy?

Which of the following roles does the government play in supporting a capitalist economy?

Prioritizing Public Spending

Analyzing Government Expenditures

Analyzing an Informal Agreement

A small village maintains a common pasture where any resident can graze their sheep. There are no rules limiting the number of sheep per family. Recently, the quality of the pasture has declined significantly due to overgrazing, affecting the health of all the sheep. Which statement best analyzes the economic incentives facing an individual villager in this system?

Evaluating a Modern Government Policy

An 18th-century economist argued that the government's legitimate functions are limited to national defense, the administration of justice, and the provision of certain public works and institutions that are beneficial to society but unprofitable for individuals to provide. Based on this specific framework, which of the following modern government actions would be the most difficult to justify?

An influential 18th-century economist argued that while markets should be largely free, the state has a few essential functions. Match each specific government action below to the core government role it best represents according to this economist's framework.