Which of the following is prerequisite of successful market economies?
A) The existence and enforcement of property rights
B) A tax system that redistributes income from the rich to the poor
C) The ability of the government to appropriate economic profits beyond a certain amount to ensure equality in income distribution
D) A military presence to ensure political freedom

Question

Quizplus · Accepted Answer

The existence and enforcement of property rights are essential for market economies to function effectively. Without property rights, businesses and individuals lack incentives to invest in and produce goods and services, as their investments can be easily expropriated by others. Property rights also provide a legal framework for resolving disputes and enforcing contracts, which are necessary for the smooth workings of markets. The other options listed (B, C, and D) do not necessarily contribute to or ensure the success of market economies.

Which of the Following Is Prerequisite of Successful Market Economies