When institutions and policies provide secure property rights, a fair and balanced judicial system, monetary stability, and effective limits on the power of government, which of the following is most likely to be encouraged?
A) Rent-seeking.
B) Actions that reduce the value of resources.
C) Productive activities.
D) Destructive activities.

Question

Quizplus · Accepted Answer

When institutions and policies provide secure property rights, a fair and balanced judicial system, monetary stability, and effective limits on the power of government, productive activities are most likely to be encouraged. This is because individuals and businesses are more likely to invest, innovate, and create wealth when they feel their rights are secure and they have a level playing field to compete in.

When Institutions and Policies Provide Secure Property Rights, a Fair