Enforcing property rights in an economy will
A)cause the market system to work less efficiently.
B)decrease the level of foreign portfolio investment.
C)encourage corruption and expand the underground economy.
D)raise the level of investment.
E)decrease the opportunities for trade.

Question

Quizplus · Accepted Answer

Enforcing property rights creates a more secure environment for investment, which in turn raises the level of investment. This is because when individuals know that their property rights are protected, they are more willing to invest in businesses or assets that have the potential to generate a return. Therefore, choice D is the correct answer.

Enforcing Property Rights in an Economy Will