Question

Property rights do not necessarily have to be enforced by the government for markets to work.

• A. True
• B. False

Answer 1

The correct option is B

False

False. Property rights have to be enforced by the government for markets to work. Markets work most effectively when consumers and producers are granted the right to own property, but in many cases property rights cannot easily be allocated to certain resources. Failure to assign property rights would limit the ability of markets to form and function.