Which of the Following Is Prerequisite of Successful Market Economies

question 97

Multiple Choice

Which of the following is prerequisite of successful market economies?

• A) The existence and enforcement of property rights
• B) A tax system that redistributes income from the rich to the poor
• C) The ability of the government to appropriate economic profits beyond a certain amount to ensure equality in income distribution
• D) A military presence to ensure political freedom

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Definitions:

Mutually Exclusive

A situation or decision-making scenario where the acceptance of one option necessarily means the rejection of another.

Discounted Payback

The period of time required for the return on an investment to cover the cost of the investment, accounting for the time value of money.

Rate of Return

The increase or decrease in value of an investment during a specific duration, represented as a percentage of the investment's starting cost.

Cash Inflow

The total amount of money being transferred into a company, typically from operations, investments, and financing activities.