McConnell_Brue_Chapter02

The government also facilitates trade and business

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Unformatted text preview: facilitates trade and business activity by supporting and encouraging the establishment of contracts among individuals and entities. Doing so allows us to create law between ourselves regarding private property to some extent and further promotes advanced functions within market systems. And finally, the government also established and maintains court systems in which disputes to contract law may be resolved. A second dimension of private property ownership market systems protect is the domain of intellectual property. Market systems allow the exclusive ownership of intellectual property through legal documents such as patents, copyrights, and trademarks. In the event such protective measures were not in place, much of the motivation to create and invent would diminish. There would be no protection from competition and the potential for profit from such sources would be minimized. 18 Learning Objective 2-2 8 Chapter 2: The Market System and The Circular Flow Slide 19 Key Market Systems Characteristic #2 Freedom of Enterprise and Choice Freedom of enterprise ensures that entrepreneurs and businesses are free to obtain and use resources to produce goods of their choice and satisfy market demand. Freedom of choice enables...
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