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 harder work under the __________ system and less risk taking under the __________ system.

Question

Quizplus · Accepted Answer

People are likely to work harder when they can keep a larger portion of their earnings, as in the latter system (two-thirds). Conversely, they may take fewer risks when they keep less of their earnings, as in the former system (one-third).

Compare a Property Rights System in Which People Are Allowed