Weak Government Enforcement of Contracts and Laws Tends to

question 93

Multiple Choice

Weak government enforcement of contracts and laws tends to

• A) increase economic efficiency by minimizing government interference.
• B) stimulate innovation and investment.
• C) discourage economic activity by encouraging private-sector coercion such as blackmail and extortion.
• D) not affect economic activity, as incentives for theft and deception are low.

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Definitions:

Federal Government

The national government of a federal country, where powers are divided between central government authorities and constituent political units (states or provinces).

Nationalized

The process by which private assets or industries are transferred to government ownership and control.

Conservationists

People or organizations that support the conservation and safeguarding of natural habitats and animal life.

Natural Resources

Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.