When Institutions and Policies Provide Secure Property Rights, a Fair

question 49

Multiple Choice

When institutions and policies provide secure property rights, a fair and balanced judicial system, monetary stability, and effective limits on the power of government, which of the following is most likely to be encouraged?

• A)rent-seeking
• B)actions that reduce the value of resources
• C)productive activities
• D)destructive activities

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Definitions:

Knowledge Gathering

The collection of information from various sources comprehensively, aiming to increase understanding or make informed decisions.

Franchise System

A method of doing business whereby a franchisor licenses trademarks and proven methods of doing business to a franchisee in exchange for a recurring payment, and often a percentage of the franchisee's revenue.

Franchise Relationship Model (FRM)

A business model where a franchisor licenses its know-how, procedures, intellectual property, use of its business model, brand, and rights to sell its branded products and services to a franchisee.

Best Efforts

A commitment to exert the utmost effort to achieve a specified objective within the constraints of the situation, without guaranteeing the outcome.