Even if markets are generally a good way to organize economic activities, the role of government is still critical to ensure that market power works well, and that the price mechanism gives the right signals to buyers and to sellers to deliver efficient outcome. For instance, it's vital for the government to ensure that property rights (ability of people to exercise authority over the resources they own) exist and well defined. What happens when property rights are weak? You may consider providing a specific example/story of a country with weak rule of law (or high level of corruption) and its adverse impact on incentives, businesses, market efficiency, and allocation of resources.?

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When property rights are weak or poorly enforced it can have significant adverse effects on incentives businesses market efficiency and the allocation ... View the full answer