The Type of Legal System and the Level of Corruption

question 12

Multiple Choice

The type of legal system and the level of corruption in a country have been found to be:

• A) unrelated to the rate of economic growth in a country.
• B) significant determinants of the rate of economic growth in a country.
• C) important topics for political discussion, but not economic explanations of growth.
• D) important variables explaining the Golden Rule level of capital.

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Definitions:

Rental Revenue

Income received from leasing out properties or equipment to others.

Capital Lease

A lease agreement considered similar to a purchase of the leased asset, showing both an asset and a liability on the lessee's balance sheet.

Contingent Rentals

Rental payments that are not fixed or determined upfront but depend on the occurrence of a future event or condition.

Accumulated Amortization

The total amount of amortization expense that has been applied to a fixed asset since its purchase.