Asked by Courtney Cridland on May 25, 2024
Verified
Which of the following is a reason why government is a participant in a market-oriented economy?
A) To enforce contracts and protect private property
B) To promote collusion
C) To promote the growth of natural monopolies
D) To provide more inequality in the distribution of income
E) To promote externalities
Market-Oriented Economy
A market-oriented economy is one where economic decisions and the pricing of goods and services are guided by the interactions of individuals and businesses in the marketplace.
Enforce Contracts
The legal process of ensuring that the terms of a contract are upheld by the parties involved.
Private Property
A legal designation for the ownership of property by non-governmental legal entities, giving the owner exclusive rights over the use, disposal, and benefits of the property.
- Grasp the significance of government roles in promoting competition, ensuring economic stability, and safeguarding private property.
Verified Answer
RS
Rylie SkahillMay 27, 2024
Final Answer :
A
Explanation :
The government's role in enforcing contracts and protecting private property is essential in creating a stable and trustworthy market environment. Without this role, individuals may not feel secure in engaging in market transactions, which could lead to market failure.
Learning Objectives
- Grasp the significance of government roles in promoting competition, ensuring economic stability, and safeguarding private property.