If property rights are not enforced in a country
A)the market system will still work smoothly.
B)entrepreneurs are unlikely to risk their own funds investing in such an economy.
C)that country's growth rate will not be affected.
D)that country will grow more rapidly because of the reduction of law suits.

Question

Quizplus · Accepted Answer

Property rights are essential for entrepreneurs to invest their funds in an economy with confidence. Without the assurance of property rights, entrepreneurs may hesitate to invest as they cannot ensure their investments' safety. Therefore, the absence of enforced property rights can deter investment, leading to slower economic growth.

If Property Rights Are Not Enforced in a Country