What does a successful market economy require?

Question

Quizplus · Accepted Answer

A successful market economy requires well-defined property rights to ensure individuals and businesses can own and trade assets without fear of expropriation or theft. An independent court system is also necessary to adjudicate disputes based on the law and guarantee contracts are respected.

C and D are incorrect because generous unemployment benefits and paid medical leave can be detrimental to economic growth and sustainability. Similarly, an equitable distribution of income and limits on immigration could limit economic mobility and reduce the incentive to innovate and invest. A government-controlled banking system and price controls could also hinder market efficiency and lead to corruption.

What Does a Successful Market Economy Require