Which factor is key in the effectiveness of well-functioning markets?
A)outcomes that are equitable for consumers and producers
B)the role of the government to deliver economic signals to consumers and producers
C)a significant degree of government intervention to maximize efficiency
D)your right to use and dispose of your private property as you see fit

Question

Quizplus · Accepted Answer

The right to use and dispose of private property is a key factor in the effectiveness of well-functioning markets as it allows individuals to make their own economic decisions and to use resources efficiently. This concept is the foundation of capitalism and enables markets to function without significant government intervention. Option A is important for fairness, but not a key factor in market effectiveness. Option B is discussing the role of the government, which is not key for market effectiveness. Option C is contradicting market efficiency because government intervention may not always maximize efficiency.

Which Factor Is Key in the Effectiveness of Well-Functioning Markets