When a country doesn't enforce property rights, it will:
A)cause the market system to work efficiently.
B)not change the level of investment.
C)raise the level of investment.
D)lower the level of investment.

Question

Quizplus · Accepted Answer

When a country doesn't enforce property rights, it leads to uncertainty and insecurity among investors. This uncertainty results in a higher risk premium, which makes investment in such an economy less attractive. As a result, investors will lower their level of investment in such an economy, which will negatively impact economic growth and development.

When a Country Doesn't Enforce Property Rights, It Will