When competition is present and property rights secure, people will be encouraged to
A) plunder the resources of others.
B) pay the lowest possible wages.
C) provide others with things that they value in exchange for income.
D) Invest in other countries where markets are less competitive and property rights less secure.

Question

Quizplus · Accepted Answer

When competition is present and property rights are secure, people will be encouraged to provide others with things that they value in exchange for income. This is because competition encourages individuals to provide better products or services than their competitors, and secure property rights ensure that the individuals' efforts and investments will be protected. Therefore, individuals are incentivized to create value for others in order to earn income. Plundering resources or paying low wages would not be sustainable in the long run and could potentially harm the individual's reputation and business prospects. Investing in other countries may be a viable option, but it is not necessarily the only or best option.

When Competition Is Present and Property Rights Secure, People Will