Final answer:
A creditable court system to protect the rights of property and uphold the rule of law is an absolute necessity for an economy to function properly, ensuring legal protections for economic transactions and growth.
Step-by-step explanation:
One absolute necessity for an economy to function properly is a creditable court system to protect property rights and uphold the rule of law, signified by option (A). Without such a system, property rights cannot be protected, and the rule of law would falter, leaving the economy at risk of inefficiency and corruption. Economic systems are built on the foundation of property rights and legal systems that ensure fair, clear, and enforceable rules surrounding transactions and interactions.
A government plays various roles such as regulator, protector, provider, consumer, and promoter of the nation's economic goals in what is known as a mixed economy or modified free enterprise economy. Nevertheless, its fundamental purpose is to maintain an environment where rule of law prevails and property rights are upheld, enabling individuals and businesses to freely engage in economic activities, knowing their transactions and agreements are legally protected. This function of government supports economic growth by allowing markets to operate effectively and efficiently.
While other governmental roles such as redistributing income or selecting winners in the economy can be debated, the necessity of a government to provide a credible court system is generally accepted as crucial for the basic operation of any economy. The purpose of such a legal framework includes the settlement of disputes, protection against unlawful activities, and the maintenance of a market environment in which competition can thrive without undue interference or coercion.