Establishing property rights
A)is a characteristic of most centrally planned economies.
B)provides incentives.
C)is the most important feature of a centrally planned economy.
D)is not necessary for a market economy to function.
E)is a key obstacle for the economy to grow over time.

Question

Quizplus · Accepted Answer

Establishing property rights is a crucial aspect of a market economy as it provides incentives for individuals to invest and innovate, leading to economic growth. Without clear property rights, individuals may be hesitant to invest in assets as there is no guarantee of return or protection from theft or expropriation. Central planned economies typically do not prioritize property rights as the government owns and controls all major assets.

Establishing Property Rights