What is one component necessary for markets to work?

Question

Quizplus · Accepted Answer

Property rights refer to the legal ownership and control over resources, including land, labor, and capital. Without property rights, there would be no incentive for individuals and firms to invest in and produce goods and services, as they would not be able to accrue the benefits of their labor or investment. Property rights also facilitate the exchange of goods and services in markets, as buyers and sellers can clearly define and enforce their ownership of assets being traded. Therefore, property rights are a necessary component for markets to function effectively.

What Is One Component Necessary for Markets to Work