An Example of a Government Policy to Provide a Framework

question 130

Multiple Choice

An example of a government policy to provide a framework within which the private sector can operate productively is:

• A)the taxation of savings.
• B)the suppression of political dissent.
• C)establishing well-defined property rights.
• D)government ownership of capital.

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Definitions:

Freedom of Enterprise

The freedom for individuals to start and operate private businesses in search of profits with minimal government intervention.

Competition

The economic rivalry between companies or individuals for a larger share of a market, leading to better quality products and services at lower prices.

Competition

The rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix.

Independently Acting Buyers

are consumers who make purchasing decisions based on their own preferences and circumstances, without coordinating with others.