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Q: How does the government reward or punish certain consumer behaviors?
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What does government enact to encourage certain behaviors and punish others?

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How does the government reward and punish certain comsumer behaviors?

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its legislation which are enacted by general assembly(parliament) in other word they may be called laws.


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Who in the government can punish?

I am not sure what your question is asking, but the judicial branch and the justice department can punish.