An absence of enforcement of contracts would encourage economic development because people would be more willing to incur risks if they did not have to worry about getting sued.

Question

Quizplus · Accepted Answer

An absence of enforcement of contracts would actually discourage economic development because people would be less willing to take risks if they cannot trust that their contracts will be honored. The ability to enforce contracts creates a sense of security and stability, which encourages investment and innovation.

An Absence of Enforcement of Contracts Would Encourage Economic Development