What is a market economy and why is it essential that government play a role in such an economy?

Question

Quizplus · Accepted Answer

The Answer is A market economy is an economic system based on private property and the market in which, individuals decide how, what, and for whom to produce. Government plays an essential role in such an economy because it must allocate and defend private property rights. If people do not respect private property, those who take property from others eliminate the incentive for people to acquire and accumulate private property. Without this incentive, there will be no production and the economic system will collapse into anarchy.

What Is a Market Economy and Why Is It Essential