If the legal and regulatory environment fails to protect property rights and is often used to favor some at the expense of others, which of the following is most likely to be encouraged?
A)productive activities
B)a high rate of investment
C)rent-seeking and unproductive activities
D)competitive markets

Question

Quizplus · Accepted Answer

When property rights are not protected and the legal environment is biased, individuals and firms are more likely to engage in rent-seeking and unproductive activities to gain advantages through manipulation or exploitation of the system, rather than through productive economic activities.

If the Legal and Regulatory Environment Fails to Protect Property