Individuals are more likely to engage in productive activities when institutions and policies
A) create a fair and unbiased judicial system.
B) result in high and variable rates of inflation.
C) transfer a large share of income through the political process.
D) are used to centrally plan the economy.

Question

Quizplus · Accepted Answer

A fair and unbiased judicial system promotes trust and confidence in the rule of law, which encourages individuals to engage in productive activities as they are more likely to be protected by the legal system. High and variable rates of inflation, transferring a large share of income through the political process, and centrally planned economies all have negative impacts on economic growth and productivity.

Individuals Are More Likely to Engage in Productive Activities When