A critical function of the government in facilitating the operation of a market economy is
A)producing goods and services for low-income households.
B)setting up and enforcing private property rights.
C)ensuring an equal distribution of income to all citizens.
D)controlling the market prices of essential services.

Question

Quizplus · Accepted Answer

Setting up and enforcing private property rights is crucial in allowing individuals and businesses to engage in transactions and investments without fear of theft, fraud, or other violations. This creates a stable environment for economic activity to thrive, which is essential for a market economy to function effectively. The other options listed are not essential functions of government in facilitating a market economy.

A Critical Function of the Government in Facilitating the Operation