What is the effect of a country not enforcing property rights?
A)The market system will still work smoothly.
B)That country will grow more rapidly because of the reduction of law suits.
C)That country's growth rate will not be affected.
D)Entrepreneurs are not likely to risk their own funds investing in such an economy.

Question

Quizplus · Accepted Answer

Property rights are essential for entrepreneurs to invest in an economy. Without property rights, entrepreneurs are less likely to risk their own funds, as they cannot be assured of security for their investments. As a result, an economy that does not enforce property rights is likely to experience lower levels of investment and growth.

What Is the Effect of a Country Not Enforcing Property