A System of Property Rights

question 416

Multiple Choice

A system of property rights

• A) reduces the efficiency of government, which reduces the growth rate of the economy over time.
• B) encourages investment but discourages entrepreneurial activity, so the effect on economic growth is uncertain.
• C) encourages economic growth by creating incentives to invest in capital and to be innovative.
• D) discourages economic growth by discouraging the development of new ideas and ways of doing things.

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Definitions:

Salivate

The secretion of saliva in the mouth, which can be an automatic response to the anticipation of food.

Lemon Juice

The liquid extract of the lemon fruit, known for its acidic taste and high vitamin C content.

Open-minded

Willingness to consider new ideas, perspectives, or possibilities without prejudgment.

Behavioral Style

A consistent pattern of actions and reactions exhibited by an individual across different situations.