Asked by Osvaldo Munoz on Jul 23, 2024

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Which factor is key in the effectiveness of well-functioning markets?

A) outcomes that are equitable for consumers and producers
B) the role of the government to deliver economic signals to consumers and producers
C) a significant degree of government intervention to maximize efficiency
D) your right to use and dispose of your private property as you see fit

Private Property

A legal designation for the ownership of property by individuals or corporations, allowing for the exclusive use and distribution of that property.

Well-Functioning Markets

Markets where resources are allocated efficiently, with prices reflecting the true supply and demand dynamics, and where participants have full information.

Government Intervention

Actions taken by a government to affect the economy, markets, or society, including regulations, policies, or subsidies.

  • Understand the role of property rights in effective market functioning and their impact on market outcomes.
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KS
Karla SalesJul 29, 2024
Final Answer :
D
Explanation :
The right to use and dispose of private property is a key factor in the effectiveness of well-functioning markets as it allows individuals to make their own economic decisions and to use resources efficiently. This concept is the foundation of capitalism and enables markets to function without significant government intervention. Option A is important for fairness, but not a key factor in market effectiveness. Option B is discussing the role of the government, which is not key for market effectiveness. Option C is contradicting market efficiency because government intervention may not always maximize efficiency.