A Legal System That Enforces Property Rights Is Important to Economic

question 79

Multiple Choice

A legal system that enforces property rights is important to economic growth because

• A) legal protection of ideas and technologies gives people who innovate the ability to protect their work.
• B) the legal system can help the government with tax collection.
• C) strong laws demonstrate commitment by legislators to economic growth.
• D) bankruptcy laws encourage lending.

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Definitions:

Market Rate

The prevailing price or interest rate in the market for goods, services, or securities.

Interest

The payment made for the use of (borrowed) money.

Total Fertility Rate

The average number of children a woman is expected to have during her lifetime in a specific population.

Present Value

The present value of a future amount of money or series of cash flows, using a given rate of return.