Innovation typically increases when
A) market incentives and private property rights are encouraged.
B) government controls the resource base.
C) high taxes are present.
D) the legal system is weak.

Question

Quizplus · Accepted Answer

Innovation thrives when there are market incentives and private property rights encouraged because they create an environment of competition and rewards for successful innovation. Government control over the resource base or high taxes can stifle innovation, while a weak legal system can hinder the protection of intellectual property and the enforcement of contracts, discouraging innovation. Therefore, choice A is the best answer.

Innovation Typically Increases When