An example of an institutional requirement for the operation of effective private markets is

Question

Quizplus · Accepted Answer

Enforcement of contracts is crucial for private markets to function effectively. Contracts ensure that buyers and sellers fulfill their respective obligations, which allows for trust and reliability in business transactions. Without contract enforcement, private markets could easily collapse due to a lack of confidence and security for both parties involved. The ability of government to correctly project trends and the ability of advertisers to influence consumers are not necessary institutional requirements for effective private markets.

An Example of an Institutional Requirement for the Operation of Effective