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Essay text:
Discrete units of government referee economic relationships, seek out foul play, and impose penalties.
Government intervention is presumed to improve the allocation of resources. By supplying a medium of exchange, ensuring product quality, defining ownership rights, and enforcing contracts, the government increases the volume and safety of exchange. This widens the market and fosters greater specialization in the use of property and human resources. Such specialization promotes a more efficient allocation of resources.
The government improves the operation of a market system by maintaining competition...
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