In its protective role, what environmental issue must the government address in a free enterprise system?

• A. Economic growth
• B. Trade regulations
• C. Environmental hazards
• D. Labor laws

Answer: (C)

In a free enterprise system, the government plays a crucial protective role in addressing environmental hazards. This is essential because unregulated business practices can lead to pollution, resource depletion, and other detrimental effects on the environment. By establishing regulations and standards, the government ensures that businesses operate sustainably and do not harm public health or the ecosystem.

For example, regulations could involve setting limits on emissions, ensuring safe waste disposal, and protecting natural habitats. These measures help mitigate risks associated with environmental degradation and promote responsible corporate behavior. This not only safeguards the environment but also benefits society at large, including future generations, by preserving natural resources and ensuring a healthy living environment.

Addressing economic growth, trade regulations, and labor laws are certainly important aspects of government policy, but they do not directly focus on the critical need to protect the environment from hazards that may arise as a result of business activities.