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.
E)that country's growth will be high due to added incentive to innovate.

Question

Quizplus · Accepted Answer

Without enforced property rights, entrepreneurs are unlikely to risk their funds because they have no guarantee that their investments will be protected. This can hinder economic growth and development.

If Property Rights Are Not Enforced in a Country