A well-functioning market economy requires laws protecting private property rights and providing mechanisms for contract enforcement.

Question

Quizplus · Accepted Answer

Without a legal system that protects property rights, and without the machinery to enforce that system, the incentive to engage in economic activity can be reduced substantially by private and public entities, including organized crime, that expropriate the profits generated by the efforts of private-sector entrepreneurs.

A Well-Functioning Market Economy Requires Laws Protecting Private Property Rights