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 food items.

Question

Quizplus · Accepted Answer

Setting up and enforcing private property rights is crucial in facilitating the operation of a market economy. Without a legal framework that recognizes private property rights, individuals and firms would not be able to own, trade, or invest in property and assets, which are essential in enabling the market to function efficiently. The government's role is to create and maintain the legal institutions that protect these rights and ensure that contracts are enforced, which helps to foster trust and confidence in the market.

A Critical Function of the Government in Facilitating the Operation