Individuals are more likely to engage in productive activities when institutions and policies
A)create a fair and unbiased judicial system.
B)provide for monetary stability.
C)restrict the ability of government to transfer wealth through taxation and regulation.
D)All of the above.

Question

Quizplus · Accepted Answer

All of the above options are necessary to promote productive activities. A fair and unbiased judicial system ensures that individuals feel secure in their property rights and intellectual property, which encourages investment and innovation. Monetary stability allows for individuals and businesses to make long-term plans with confidence. Restricting the ability of government to transfer wealth through taxation and regulation incentivizes individuals to work hard and take risks since they are able to keep a larger portion of the fruits of their labor.

Individuals Are More Likely to Engage in Productive Activities When