Question

Which one of the government actions would most enhance efficiency in a free market, according to most economists? regulating profits to prevent extreme disparities in wealth placing limits on the amount that landlords can increase rent to protect renters identifying and helping industries that are the most important to the ruling party's policies protecting private property Per most economists, which of the possible government activities would not enhance the operation of a free market? defining property rights clearly creating an independent judiciary establishing a minimum wage to guarantee minimum incomes for unskilled workers issuing a patent for a water purifier that prevents anyone but the inventor from producing it

Answer 1

Protecting private property enhances efficiency in a free market by providing security for investments, whereas establishing a minimum wage might not enhance market operation as it can lead to unemployment and distort labor market signals.

Step-by-step explanation:

Among the government actions that would most enhance efficiency in a free market, according to most economists, is protecting private property. This action provides a foundational element for market activities because it ensures that individuals can securely own and invest in assets, which in turn, solidifies the incentives to engage in economic activities. Conversely, of the options listed, establishing a minimum wage is the action that might not enhance the operation of a free market, as it can create a price floor above the equilibrium wage, potentially leading to a surplus of labor (unemployment), and distortion of market signals for labor.

Answer 2

Answer: 1. statement d

2. statement d

Explanation: This can be explained as follows :-

1.Government intervention should be done on those sectors that results in maximization of wealth. Private sector is the back bone of every economy's free market, thus, protecting private property is the correct option.

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2. Issuing patent right to the inventor will result in monopoly by that particular producer and that too of a necessary commodity hence option d is correct.