1.2.5 Quiz: Different Ways to Play Question 5 of 10
2 Points
Which of the following best explains why property rights are necessary in a
free-market system?
at
A. Competition cannot exist if some own property and others do not.
O B. Market forces only work when everyone owns some property.
C. Property rights allow consumers and producers to make free
choices.
O D. The government cannot plan an efficient economy without
passing laws.

Property rights allow consumers and producers to make free choices .

Explanation:

A free market in an economic system is solely based on the market forces of demand and supply with minimum government intervention.

Property right is the authority of ownership that determines how a property can be put to an efficient use , thereby promoting efficiency.

This is necessary in a free - market system as it allows consumers and producer to make free choices , as the intervention of the government is at the minimal level.