Question

What is necessary for the effective functioning of a market system?

Answer 1

Answer:  A market economy has freedom of choice and free enterprise

Explanation: People are free to sell these goods and services in markets of their choice. Consumers are free to buy the goods and services that best fill their wants and needs. Workers are free to seek any jobs for which they are qualified.

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Answer 2

Answer:

well-defined system of property rights

Explanation:

Property rights are the organizing force of markets and are like rules of a game. When everybody knows the rules, and those rules are followed and enforced, everyone can enjoy the game and play their best. When property rights are well defined and enforced, markets operate their best.