If property rights are enforced and contracts in trade are legally respected, it is usually assumed that:

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Quizplus · Accepted Answer

When property rights are enforced and contracts in trade are legally respected, it provides a stable environment for investment. This stability encourages investors to put their capital into production, knowing that they will be able to profit from their investment. This in turn leads to the expansion of the economy, job creation, and increased output. However, this does not mean that government is unnecessary, as it still plays a role in enforcing property rights and contracts, as well as providing public goods and regulating externalities.

If Property Rights Are Enforced and Contracts in Trade Are