Question

2 Points

Which of the following best explains why the government makes and
enforces laws in a free-market system?
O
A. Competition among producers by itself cannot ensure a wide
range of consumer choices.
O
B. The government needs to plan efficient outcomes.
O
C. Laws against theft, fraud, and coercion are needed to protect free
choice.
O
D. Workers pressure the government to guarantee minimum wages.

Answer 1

Answer: laws against theft, fraud, and coercion are needed to protect free choice.

Answer 2

The correct answer is letter A

The free market is what happens in opposition to the planned economy or the state economy. In countries with a capitalist economy there is a dominance of the market economy, a system defended by economic liberalism. In other words, there is a greater presence of the free market in these places. Contrary to this, there is a predominance of a state economy, this model is common in countries with a more socialist economic plan.