A Legal System That Protects Private Property and Enforces Contracts

question 118

Multiple Choice

A legal system that protects private property and enforces contracts in an even-handed manner helps promote economic growth because it

• A) makes it possible for individuals to generate large incomes and get ahead without cooperating with others.
• B) provides people with a strong incentive to supply others with things that they value at an economical price.
• C) encourages people to use resources now rather than conserving them for the future.
• D) keeps the real wages of workers low and thereby makes it possible for business firms to supply goods and services economically.

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Definitions:

Leader-Member Exchange

A theory focusing on the two-way relationship between leaders and followers, emphasizing the importance of communication and mutual trust in achieving positive outcomes.

Transformational Leadership

A style of leadership where a leader works with teams to identify needed change, creating a vision to guide the change through inspiration and executing the change in tandem with committed members of the group.

Charismatic Leadership

A leadership style characterized by an individual's ability to inspire and motivate followers through their personality, communication, and actions.

Effects

The outcomes or changes that result from a specific cause or series of events.