(I)When a country's institutions and policies provide secure property rights,a fair and balanced judicial system,monetary stability,and effective limits on government's ability to transfer wealth through taxation and regulation,creative individuals are more likely to engage in product development,investment,and other productive activities.
(II)When a country's legal and regulatory environment fails to protect property rights and is often used to favor some at the expense of others,individuals are instead more likely to engage in attempts to manipulate the political and legal process in order to plunder wealth from others.
A)I is true,II is false.
B)I is false,II is true.
C)Both I and II are true.
D)Both I and II are false.

Question

Quizplus · Accepted Answer

Both statements are true and present two different outcomes based on the legal and regulatory environment of a country. In option I, a secure legal and regulatory framework encourages productive activities, while in option II, a weak legal and regulatory environment results in individuals manipulating the political and legal processes to plunder wealth.

(I)When a Country's Institutions and Policies Provide Secure Property Rights,a