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- Explain why the boundaries
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Card 8 / 100: Explain why the boundaries imposed by property ownership are absolutely essential to a capitalist system.
Answer:
Capitalism gives people the freedom to start any business or to work for any employer that they desire. Consumers are also free to buy or not buy whatever products and services they desire. The only way this system can work is if there are strict boundaries on who owns what, so that it is clear which person has the right to use or trade away a particular good. Sample Partial Credit Answer If people didn't get to keep the fruits of their labor, they would have no reason to work hard.
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Dr.Robert MurphyAssociated Scholar
Mises Institute
USA
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Attribution:
Dr. Robert P. Murphy, Lessons for the Young Economist. (Mises Institute), http://mises.org/document/6215/Lessons-for-the-Young-Economist (Accessed 04 April, 2014). License: Creative Commons BY
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