Explain why economists consider it to be one of the economic ...

[imowrer]

Explain why economists consider it to be one of the economic functions of government to provide a legal system.
 
  What will be an ideal response?

Question 2

A black market may occur when
 
  A) the government imposes a price floor below the market clearing price.
  B) the government imposes a price ceiling below the market clearing price.
  C) the government imposes a price ceiling above the market clearing price.
  D) the government does not impose either a price ceiling or a price floor.

[tmlewis4706]

Answer to Question 1

A market economy relies heavily on contracts and property rights. Property rights must be defined and protected if people are going to make investments in resources, and if people are going to exchange assets. Contracts must also be enforced. By providing a legal system, the government can ensure that a market system will function better.

Answer to Question 2

B

[imowrer]

Thanks for the timely response, appreciate it

[peter]

Excellent