If the Legal and Regulatory Environment Fails to Protect Property

question 91

Multiple Choice

If the legal and regulatory environment fails to protect property rights and is often used to favor some at the expense of others, which of the following is most likely to be encouraged?

• A) Productive activities.
• B) A high rate of investment.
• C) Rent-seeking and unproductive activities.
• D) Competitive markets.

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Definitions:

First Amendment

A part of the U.S. Constitution that protects freedoms including speech, religion, press, assembly, and petition.

Protection

Measures or policies implemented to guard against harm or loss in a legal, financial, or security context.

Takings Clause

A provision in the Fifth Amendment of the U.S. Constitution that prohibits the government from taking private property for public use without just compensation.

Public Use

Refers to the government's authority to take private property for public purposes under the doctrine of eminent domain, provided there is just compensation.