Compare a property rights system in which people are allowed to keep one-third of the monetary rewards of their labor with a system in which they keep two-thirds.We should expect more entrepreneurship under the __________ system and faster real economic growth under the __________ system.
A) former; former
B) former; latter
C) latter; former
D) latter; latter

Question

Quizplus · Accepted Answer

In a system where individuals keep a larger portion of their earnings (two-thirds), there is a stronger incentive for entrepreneurship and innovation, leading to faster real economic growth, compared to a system where they keep a smaller portion (one-third).

Compare a Property Rights System in Which People Are Allowed