Question

The free-market system cannot exist without government regulation for what reason?

Responses

There are various definitions of freedom, equality, security, and growth.

There are various definitions of freedom, equality, security, and growth.

Theft, coercion, and fraud are fundamental features of a free-market economy.

Theft, coercion, and fraud are fundamental features of a free-market economy.

Collective bargaining agreements always favor workers over their employers.

Collective bargaining agreements always favor workers over their employers.

The profit motive undermines competition unless competition is protected.

The profit motive undermines competition unless competition is protected.

Answer 1

The profit motive undermines competition unless competition is protected.

Brief explanation: Without regulation firms can form monopolies, collude, or erect barriers to entry, which destroys competitive markets. Government enforces property rights, contracts, antitrust laws, and other rules to preserve competition and prevent market failures.