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.

Question

Quizplus · Accepted Answer

Enforcing property rights gives individuals and businesses greater assurance that they will be able to keep the fruits of their investment and hard work. As a result, they are more likely to engage in productive activities that require significant investments, such as building factories or developing new technologies. This, in turn, leads to higher levels of investment, economic growth, and overall efficiency in the market system.

Enforcing Property Rights in an Economy Will