Asked by Lexie Friedges on Sep 23, 2024
Verified
Government can
A) Create wealth by not interfering in the markets in any way what so ever
B) Not affect wealth in the markets
C) Create wealth by enforcing property rights and contracts
D) Create wealth by making choice decisions for the market
Property Rights
Property rights are the legally recognized rights to own, utilize, and dispose of assets or property, which can include both physical and intellectual property.
Interfering
The act of impeding or meddling in the affairs or processes of others, potentially causing disruption or hindrance.
Choice Decisions
The cognitive process of selecting among multiple options or actions in various contexts.
- Dissect the effects of state control in market activities, viewing taxation, price moderation, and subsidy distribution.
- Master the concept of wealth fluctuation as a result of distinct economic actions and policy decisions.
Verified Answer
VM
Vanessa Matti3 days ago
Final Answer :
C
Explanation :
The government can create wealth by enforcing property rights and contracts. This ensures that individuals are able to confidently engage in economic activity, knowing that their property and agreements are protected by the law. This creates a stable environment for economic growth and the generation of wealth. Option A is incorrect because a completely hands-off approach by the government may lead to market failures and inefficiencies. Option B is insufficient because government policies and actions can have an impact on the markets. Option D is incorrect because government decision making in the market may lead to inefficiencies and unintended consequences.
Learning Objectives
- Dissect the effects of state control in market activities, viewing taxation, price moderation, and subsidy distribution.
- Master the concept of wealth fluctuation as a result of distinct economic actions and policy decisions.