In a market system:

Question

In a market system:

Quizplus · Accepted Answer

Private property rights are a fundamental aspect of a market system, and they must be defined, established, and protected by law in order for the system to function effectively. A market system relies on individuals owning and controlling resources, and the legal protection of these property rights encourages investment, innovation, and economic growth. Without this protection, the potential for conflict and disputes over resources could hinder economic activity. Therefore, choice C is the correct answer.

A) is incorrect because laws are necessary for establishing and maintaining a functioning market system. 
B) is incorrect because there are certain informal rules and norms that guide behavior in a market system, such as the emphasis on voluntary exchange and competition. 
D) is incorrect because there are various ownership structures such as sole proprietorships, partnerships, and corporations that may be utilized in a market system depending on the preferences of the individuals involved.

In a Market System