A smoothly functioning market economy rests on a legal system that safeguards individual property rights.

Question

Quizplus · Accepted Answer

The protection of individual property rights is essential for the functioning of a market economy as it promotes investment, innovation, and entrepreneurship, which in turn drives economic growth and development. Without a legal system that enforces property rights, individuals and businesses may be disinclined to engage in economic activities, leading to market inefficiencies and reduced economic growth. Therefore, the statement is true.

A Smoothly Functioning Market Economy Rests on a Legal System