Which government action is necessary to guarantee the conditions required for a free-market system quizlet?

Which government action is necessary to guarantee the conditions required for a free-market system quizlet?

Which of the following best explains why the government needs to pass laws against theft, coercion, and fraud in a free-market society? Which of the following best explains why scarcity cannot be eliminated from the game of economics? People will always have demands that exceed the available supply.

What are two key factors in keeping a free-market functioning?

Competition and our own self-interest keep the market place functioning. self-interest and competition work together to regulate the market place.

How is free choice protected in a free-market system?

Which best explains how free choice is protected in a free-market system? – Consumers and producers protect their own freedom by making economic decisions. – The government makes and enforces whatever laws are needed to guarantee free choice.

Which of the following best explains why property rights are necessary in a free-market system?

Which best explains why property rights are necessary in a free-market system? Property rights allow consumers and producers to make free choices.

What are the four conditions that must exist for the free enterprise system to exist?

A free enterprise system is based on four key principles: private property rights, profit motive, equal individual rights and unrestricted competition.

What is a key idea in the free market system?

Key Takeaways A free market is one where voluntary exchange and the laws of supply and demand provide the sole basis for the economic system, without government intervention. A key feature of free markets is the absence of coerced (forced) transactions or conditions on transactions.

Why are property rights necessary in a free-market system?

The fundamental purpose of property rights, and their fundamental accomplishment, is that they eliminate destructive competition for control of economic resources. Well-defined and well-protected property rights replace competition by violence with competition by peaceful means.