Question

For a market to exist:

A. private property rights must be allocated and defended by government.
B. government must guarantee equal treatment for all.
C. individuals must be concerned with the social good.
D. everyone must have identical wants and desires.

Answer 1

The correct answer is option A.

Step-by-step explanation:

For a free market to exist it is necessary that the government defends the property rights of the individuals and businesses. We are aware that in an economy resources are scarce. The ownership rights of these resources provide the incentive to businesses or individuals to make efforts.

Private property is capital in a free market economy. Individuals or businesses will invest in these resources if they have the right to own them. So, private property rights must be protected by the government.