4. Econo mists, however, identify six major?functions?of?govern ments?in market?econo mies.?Governments provide the legal and social framework, maintain competition, provide public goods and services, re distribute income, correct for extern alities, and stabilize the?economy. 5. Collective decision- making(also known as collaborative?decision- making) is a situation faced when individuals collectively make a choice from the alternatives before them.
