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:

Picketing

A form of protest by workers outside a place of employment or another significant location to express grievances or demand rights, often during strikes or labor disputes.

Boycott

A form of protest in which individuals or groups refrain from using, buying, or dealing with products or services of a company as an act of criticism or demand for change.

Mackay Doctrine

A principle from U.S. labor law allowing employers to permanently replace striking workers under certain conditions, established in the case NLRB v. Mackay Radio & Telegraph Co.

Perfect Information

A scenario in economics where all parties have access to all relevant information about a transaction, market, or event before it occurs.